Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted in Part
Department unable to provide current smart meter programme costs and benefits to Parliament.
Conclusion
At our evidence session, the Department could not provide an up-to-date figure for the Programme’s costs and benefits. It considers that both costs and benefits will have increased since 2019, given: a) lower installer efficiency and delays during COVID-19 increasing costs generally, together with higher than anticipated labour costs; and b) HM Treasury revisions to carbon prices and the increase in retail energy costs following increasing demand for energy after the pandemic and Russia’s invasion of Ukraine.73 We highlighted that the scale and size of the Programme, and length of time it will run for, meant the Department should be providing more regular information for Parliament to assess its progress. The Department acknowledged our arguments for reporting more data (including cost data) regularly to Parliament, while noting that it would want ministerial consent before agreeing to do so.74 64 Correspondence submitted by Head of Future Retail Markets, Energy UK, dated 6 July 2023 65 Q 122 66 Qq 122–123 67 Q 56; C&AG’s Report, para 2.20 68 Q 119 69 C&AG’s Report, para 2.20 70 C&AG’s Report, para 3, Figure 1 71 Qq 89–90 72 C&AG’s Report, para 5 73 Qq 19, 88–90; C&AG’s Report, paras 15, 2.4 74 Qq 91–92 Update on the rollout of smart meters 17
Government Response Summary
The government acknowledges the committee's finding that up-to-date cost and benefit figures are not available, and, treating this as a recommendation, commits to sharing this information with Parliament on an annual basis by Summer 2024. However, detailed plans for bringing the programme to a close will only be shared when they have matured.
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.