Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Seven million smart meter communication hubs require replacement by 2033 due to network closures.
Conclusion
The Department also estimates that 7 million communications hubs (a modular component of the smart meter set) will need to be replaced in the South and Central regions ahead of 2033, when 2G and 3G communications networks are closed. These will be replaced with an equivalent module which communicates using the 4G network.67 The Department told us that it considers this replacement exercise will cost ‘about’ £2 for each household.68 However, Citizens Advice indicate these costs may be very significant and ultimately borne by consumers or taxpayers.69 The future of the Programme
Government Response Summary
The government acknowledges the committee's observation on 4G communications hub replacement, stating that suppliers have an existing obligation to prevent loss of connection, and that the government is already facilitating and supporting suppliers in developing their replacement plans, which will culminate in detailed plans by 2026.
Government Response
Accepted
HM Government
Accepted
5.5 The government agrees with the Committee’s recommendation. Target implementation date: January 2026 5.6 Suppliers have an obligation (Standard Licence Condition 49.4 in electricity Licence and Gas equivalent) to ensure that they take pre-emptive steps to prevent loss of connection in the event of, for example, the 2G/3G switch off. There is a clear backstop in place for this activity by the end of 2033 as a result of the 2021 announcement by the Mobile Network Operators in the UK that they do not intend to offer 2G and 3G mobile networks past this point. 5.7 Energy suppliers therefore have a clear responsibility to protect their consumers and act to prevent a loss of smart services. Energy suppliers would also argue that this is aligned to their own commercial interests, not least in avoiding increased customer contacts and the lower cost to serve which a smart metering network enables, as well as supporting business offerings such as time of use tariffs. 5.8 The government is already undertaking steps to facilitate and support suppliers in developing plans to execute the replacement programme in a cost efficient and timely way, including: • orchestrating communication hub financing where a 4G asset replacement only is required; • collating and sharing with industry regular information on the maturity of suppliers evolving plans for 4G deployment including on field force and consumer engagement; and • working with the Data Communications Company (DCC) on supporting timely availability of quality 4G communication hubs. By 2026, this activity will culminate in suppliers detailed plans on how they will meet the 2033 backstop.