Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted in Part
Smart Meter Programme lacks up-to-date cost-benefit analysis despite being active for over a decade.
Conclusion
The government first announced its intention to mandate suppliers to install smart meters in 2008, and energy suppliers have been rolling out smart meters since 2012.70 The Programme has therefore been active for more than a decade, and although the Department has produced seven cost-benefit analyses, it has not done so since 2019.71 The Programme is in the Government Major Projects Portfolio of the largest and highest- profile programmes across government.72
Government Response Summary
The government agrees to share annual cost and benefit information with Parliament by Summer 2024 to provide visibility on the smart metering rollout. However, it does not explicitly commit to producing a full new cost-benefit analysis since the last one in 2019, instead referencing the 2019 analysis as comprehensive.
Government Response
Accepted in Part
HM Government
Accepted in Part
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2024 6.2 The National Audit Office (NAO) identified the comprehensive approach in place to monitor and act on any changes to costs and benefits of the smart metering rollout. The programme’s 2019 cost benefit analysis is a comprehensive assessment of the costs and benefits associated with the rollout of smart metering across GB. The department agrees with the recommendation to share this cost and benefit information with Parliament on an annual basis to provide additional visibility of progress in critical cost and benefit areas for the rollout. 6.3 All key costs and benefits are scrutinised regularly and used to inform the department's annual business planning, as well as planning for the enduring operating state of the programme. The Department has determined that it will be able to bring the programme to a close when the major risks have been managed, critical programme activities have transferred to their enduring operating state, and DESNZ is confident that the benefits will be successfully delivered. The plans for this transition will be shared with the Committee when they have matured, as previously agreed.