Public unconvinced by smart meter roll-out, report finds

The government has not done enough to convince the public of the benefits of smart meters, and their roll-out has been too slow, the Public Accounts Committee (PAC) has said.

In a new report, the PAC said that the roll-out had failed to meet its original targets and has repeatedly shifted its deadlines for completion. It also said that consumers with traditional meters are less interested in having a smart meter.

Reports of forced switching of consumers to smart meters last winter may have dissuaded people from installing one, the PAC said.

The initial roll-out saw many customers receive first-generation SMETS1 meters that lost function when they switched to a new supplier, meaning that their meters became analogue and they had to submit readings manually.

The government aimed to upgrade them to second-generation models that could work across suppliers, but as of May this year, around four million first-gen meters were still running.

The PAC report also found that around three million smart meters (9 per cent) were still not working properly and expressed concern about built-in obsolescence in those already installed. A further seven million smart meters will eventually need to be replaced because they will lose functionality when the 2G and 3G mobile communications networks are closed. Billpayers will ultimately bear the significant costs of these upgrades.

The inquiry heard that energy suppliers under pressure from government-imposed smart meter targets sometimes put pressure on consumers, who can feel threatened by contacts and correspondence from suppliers.

Given that only 57 per cent of all meters in Great Britain were smart in March 2023, over a decade after the roll-out began, the PAC has called on the government to revise its strategy in a bid to drive demand for the programme.

Dame Meg Hillier MP, chair of the committee, said: “The roll-out of smart meters was first conceived in 2008, with a planned completion date of 2019. Some 15 years later and four years after that missed target, and its vision of access and support for every household to control their energy efficiency remains a distant one. There are functionality issues with many, millions will have to be replaced when they become obsolete, and the evidence is unclear whether their benefits are even working as advertised.

“On top of this, smart meters have serious reputational obstacles to overcome with the public. In particular, our inquiry has found that consumers’ enthusiasm for adopting one has been understandably harmed by recent shocking reports of forced installations. The government must now get onto the front foot and explain how it is going to sell this troubled programme to the public – and how it will successfully deliver during a cost-of-living crisis for those it ought to benefit the most.”

A spokesperson for Smart Energy GB, which campaigns to boost the smart meter uptake, said: “The vast majority of people are happy with their smart meter and think the roll-out has been positive for Britain.”

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