Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Government and Smart Energy GB roles in promoting smart meter installation to consumers
Recommendation
The Department told us that Ministers have a role in promoting the benefits of smart meters and the Programme to consumers.21 The responsibility for consumer engagement primarily rests with Smart Energy GB, a company funded by mandatory contributions from energy suppliers.22 However, the Department told us it plays a role in the policy around convincing groups of people to have a smart meter installed, to help ensure installations progress across all energy consumer groups.23 EDF the energy company told us that there are clear opportunities for government departments to work more closely together to support the programme and for the policy environment around smart meters to be more favourable. These include, for example, requiring smart meters to be installed in new build homes, or in social housing, and incentivising smart meters as a credit for a property’s Energy Performance Certificate.24 Consumer benefits and their distribution among different groups
Government Response Summary
The government agrees with the recommendation and states it has been implemented. It describes how DESNZ works closely with Smart Energy GB to evolve consumer engagement strategies and expects energy suppliers to innovate incentives to drive take-up, but does not specifically address the suggested policy changes like mandating smart meters in new builds or social housing.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 The Department for Energy Security and Net Zero (DESNZ or the department) has set Smart Energy GB clear statutory objectives to build consumer demand and acceptance for smart metering and encourage behaviour change. As an Observer to Smart Energy GB’s board, the department works closely with Smart Energy GB, who continuously evolve their campaign strategy in response to findings from their extensive consumer research (as well as the evolving context of the energy market) so that messaging is tailored to different consumer segmentations. Smart Energy GB work collaboratively with energy suppliers and other stakeholders to help consumers understand the benefits of smart meters and have a specific focus on supporting consumers in vulnerable circumstances. 1.3 Smart Energy GB operate a test and learn approach, so campaigns continually improve. Their campaigns are multi-channel and use a bespoke segmentation model, alongside sophisticated market insights, to target impactful messaging in a cost-effective way. Industry-verified statistical analysis shows that more than 50% of smart meter installations are attributable to Smart Energy GB’s activities. This evidence provides assurance that the existing arrangements to evolving and delivering Smart Energy GB’s public engagement strategy continue to effectively drive demand for smart meters. 1.4 Alongside national and local campaigning from Smart Energy GB, the department expects energy suppliers to invest in and continually evolve their approaches to converting consumer demand into successful installations. Important to this will be their development of innovative incentives to encourage take-up, including by creating attractive new smart-meter-enabled products and services.