Recommendation 16

The Department and Ofgem are also in the process of introducing reforms to the energy retail market, in part to increase resilience and enable innovation. This reform comes at a time when new and innovative technologies are being developed, including those that contribute to or encourage consumer behaviour change in line with net zero.52 The Department highlighted that some innovative energy suppliers were able to offer tariffs, to consumers with smart meters, that could save up to two-thirds of the costs of charging their electric vehicles if they do so at certain times of day when the energy price is cheaper.53 Ofgem also told us about how, in winter 2022–23, the National Grid ran a demand response exercise with some smart meter consumers, by paying them to turn down their demand temporarily. In future this could be used to help manage demand at peak times.54 The Climate Change Committee analyst told us that smart meters broadly sit on the critical path to net zero and while delays in the rollout do not directly slow things down, the slower than expected progress ‘definitely does not make things easier’. It sees 44 Q 110 45 Q 76 46 C&AG’s Report, para 1.15, Figure 9 47 Q 17 48 Q 99 49 Q 69 50 Q 73; C&AG’s Report, para 1.17 51 Qq 3, 99 52 Q 112; C&AG’s Report, para 2.14; Ofgem, Ofgem launches new proposals to strengthen energy market and protect consumers, 25 November 2022 53 Qq 112–113 54 Q 97 14 Update on the rollout of smart meters smart meters as important in bringing consumers along—paving the way to educating consumers about their energy use, how energy is wasted and changes that are coming, including low carbon heating.55 55 Q 19 Update on the rollout of smart meters 15 2 Replacing non-functioning smart meters, and the future of the Programme Replacing non-functioning smart meters