Source · National Audit Office

Update on the rollout of smart meters

Published: 14 Jun 2023 Recommendations: 7 Type: Value for Money NAO confirmed: 7 Department: Department for Energy Security and Net Zero

The government has made progress with the rollout of smart meters – but it’s slower than planned and there are challenges in meeting its latest set of targets.

Dept: Department for Energy Security and Net Zero Topics: Energy and environmentHousehold energy nao.org.uk →

Recommendations

7 items

7 accepted 6 implemented 1 in progress

Rec	Recommendation	Addressee	Acceptance	Implementation
1	DESNZ should: a) build on the existing programme of monitoring, collecting more information on actual and forecast costs and benefits to: ? inform decisions on how to maximise value for money over the remainder of the rollout; and ? report Programme costs and benefits annually to Parliament Ref Page 16, paragraph 26, point a) · Implemented Q3 2024-25	Department for Energy Security and Net Zero	Accepted	Implemented ✓ NAO
2	b) by the end of 2023, determine whether more programme-wide evaluation would help to inform decisions on the remainder of the Programme. This could include further assessment of how to maximise the benefits of the smart meter network for consumers, suppliers and the wider system; Ref Page 16, paragraph 26, point b) · Implemented Implemented Q3 2023-24	Department for Energy Security and Net Zero	Accepted	Implemented ✓ NAO
3	c) develop plans for the Programme to transition to Ofgem and Smart Energy Code governance and implement these plans when key criteria are met. DESNZ should decide whether the transition criteria should include a threshold of smart meter installations at which the government considers the rollout to be complete and can demonstrate value for money will be maximised; Ref Page 16, paragraph 26, point c) · Implemented Q3 2024-25	Department for Energy Security and Net Zero	Accepted	Implemented ✓ NAO
4	Ofgem should: f) allocate sufficient time, capacity and capability to the process of renewing the central platform service licence from 2025, to ensure the central platform service is reliable and provides stability for its core service as well as enabling future beneficial services. Ref Page 16, paragraph 26, point f) · Implemented Q3 2024-25	Ofgem	Accepted	Implemented ✓ NAO
5	d) continue to work collaboratively with suppliers to address the reasons why installation rates have been slower than planned. This should take into account differences between suppliers as well as insights from DESNZ?s benchmarking work, and should consider whether to introduce additional measures to encourage or require consumers to take up smart meters; and Ref Page 16, paragraph 26, point d) · Implemented Q2 2024-25	Department for Energy Security and Net Zero	Accepted	Implemented ✓ NAO
6	DESNZ and Ofgem should: g) work constructively with suppliers on upcoming challenges in the rollout, including how to manage some consumers? continued use of traditional meters, and the replacement of communications hubs, ahead of the 2G and 3G switch-off. This work may include introducing regulatory measures and should consider how hub replacements will be financed. Ref Page 16, paragraph 28, point g) · Implemented Q4 2025-26	Department for Energy Security and Net Zero; Ofgem	Accepted	In progress ✓ NAO
7	e) continue to draw lessons from the smart meter rollout to inform the development of other policies that rely on consumer engagement and behaviour changes, particularly the decarbonisation of home heating. Ref Page 16, paragraph 26, point e) · Implemented Implemented	Department for Energy Security and Net Zero	Accepted	Implemented ✓ NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

20 Oct 2023 Public Accounts C… Seventy-Second Report - Update on the rollout of smart meters — 13 recommendations · parliament.uk