Are you ready for the new smart meter rollout obligations?
From July 1st, 2021 energy suppliers will be set new annual smart meter installation targets. In this article we look at what the new obligations entail and how you can achieve your smart meter rollout target.
What are the changes to the obligations?
Currently energy suppliers have to demonstrate that they have taken all reasonable steps to get smart meters installed into their customers properties.
This obligation was extended last year due to the disruption caused by the Covid-19 pandemic and subsequent lockdowns.
Now with lockdowns gradually easing and as pressure mounts to get as many smart meters installed as possible Ofgem has put increased emphasis on energy suppliers to get the job done.
From July 1st energy suppliers will be given set smart installation targets. These targets will be revised every year and failure to hit them will result in the supplier breaching their licencing conditions.
“Over the last year, the smart meter rollout has been affected by COVID-19, which has brought challenges to supplier delivery of the rollout through impacts on customers, staff and the supply chain. Nevertheless, since summer 2020, suppliers have largely continued to roll out smart meters to their customers while delivering in line with government guidance,” the regulator said in an open letter to suppliers.
The DCC and SMETS2 meters
The new regulatory obligation will also require energy suppliers to take all reasonable steps to install SMETS2 meters when replacing meters or installing in new premises.
All smart meters need to be operated in smart mode and all SMETS1 meters should be enrolled to the Data Communications Company (DCC) to ensure their continued functionality is retained on supplier switching.
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Other requirements of the new regulatory obligation are that suppliers “take all reasonable steps” to install the second generation SMETS2 smart meters when replacing meters or a meter is being installed for the first time, such as in new premises.
Also read: Energy Suppliers still installing tens of thousands of SMETS 1 smart meters
Why the change?
The smart meter rollout has been beset with problems since its introduction and some energy suppliers have failed to live up to their obligations of ‘doing all they reasonably’ can to install them into as many domestic and small business properties as they can.
As a result, the new rules will put extra pressure on suppliers to pick up the pace of the rollout and penalise those who fail to do so. The deadline to complete the rollout has been pushed back several times but now with pressure building to hit environmental targets the smart meter deadline is mid- 2025.
Even through the lockdowns, smart meter installations continued, albeit at a much slower pace. As of December 2020, 23.6 million smart and advanced meters had been installed but only 19.1 million of those were operating in smart mode.
The challenges
The challenges energy suppliers face when getting smart meters into their customers properties are varied but perhaps the biggest challenge is convincing them to accept one despite all the negative headlines in the media.
To help with this read our tips on how to debunk the most common myths about smart meters HERE.
Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates Ltd can help.
Further Reading
Top Tips for complying with the Ofgem Electricity Supply Licence Conditions
Energy Suppliers still installing tens of thousands of SMETS 1 smart meters
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