Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Not Addressed
Consumer smart meter demand potentially overstated due to practical installation barriers.
Conclusion
The Department characterises smart meters as a change programme, and recognises that it needs, at some point, to stop being so and become business as usual in the energy retail market.75 However, it considers that there remains significant unsatisfied demand which its current proposed target framework to 2025 recognises, claiming 35% to 40% of customers surveyed say they are keen to have a smart meter in the next six months.76 Energy UK told us the survey data findings reflect a consumer’s opinion before factoring in any barriers or inconvenience associated with an install such as waiting in or needing to rebook an appointment. This means the survey findings do not reflect these real life deterrents to having a smart meter installed and could overstate real life demand.77 The Department told us that energy suppliers also want to roll out smart meters, but they want to do so at a slower pace which better accommodates their commercial interests and objectives.78 The Department feels that by upping the pace of the rollout it can deliver benefits to consumers sooner, particularly as all energy billpayers are already covering its costs.79
Government Response Summary
The government's response details a commitment to share annual cost and benefit information and plans for program closure, which does not address the committee's observations regarding differing views on smart meter demand and rollout pace.
Government Response
Not Addressed
HM Government
Not Addressed
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.