Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Rejected
Ensure suppliers prioritise replacing faulty smart meters and deploy future-proofed technology.
Recommendation
Too many smart meters are not fully functioning and millions more will be impacted when the 2G and 3G mobile communication networks close. In March 2023, around 3 million (9%) of smart meters were not working properly in total. Of these, 1.6 million are “transitory” issues according to the Department, but the remainder were faulty, and either not sending energy use information to suppliers or not displaying usage to consumers, or both. Suppliers are supposed to take “all reasonable steps” to replace smart meters that are not working properly, but the government’s rollout targets mean suppliers have much clearer incentives to prioritise the installation of new meters rather than replacing broken ones. Consumers are only guaranteed for a year the benefits arising from being able to monitor their energy consumption in real-time - because if their display breaks after that, the supplier currently has no obligation to replace it. An estimated seven million communications hubs (part of the electricity smart meters) will also need to be replaced, because they will lose functionality when the 2G and 3G mobile communications networks are closed. The costs of these upgrades could be very significant, and, like other costs of the rollout, are ultimately passed on to billpayers. Recommendation 5: The Department and Ofgem should set out: a) what they will do to ensure suppliers assign more importance than at present to replacing those smart meters (and their in-home displays) not functioning properly; b) a timetable for replacing the communication hub element of smart meters that will lose functionality when the 2G and 3G mobile networks are switched off; c) measures to ensure that suppliers use future-proofed technology – for example, by excluding 2G or 3G connectivity – in all new smart meter installations.
Government Response Summary
The government rejects the recommendation to exclude 2G or 3G connectivity from new installations, stating it would pause the rollout, increase costs, and reduce benefits while 4G technology is still under development.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. Excluding 2G or 3G connectivity from new installations would mean pausing the rollout until 4G communications hubs are ready for deployment at scale. This would drive up the costs of the rollout, reduce benefits and prevent access to services and tariffs that help households and small businesses save money. Industry is actively developing 4G communications hub technology so it can be tested and deployed at the earliest opportunity.