Half of Energy Suppliers have failed to hit Smart Meter Installation Targets

Why have so many missed the target?

Convincing customers to adopt Smart meters has proven trickier than expected due to various well-publicised issues with the scheme and concerns over security and privacy.

Read: How to sell the benefits of smart meters to consumers

Energy suppliers cannot use the COVID-19 pandemic as an excuse either as this new report focuses on 2019, before the emergence of the virus.

As a result, many energy suppliers may have breached their licence conditions by failing to install enough SMETS2 meters in 2019. Due to the sheer number failing to hit their targets Ofgem has said that it will assess whether this shortfall was within the energy suppliers’ control.

Why now?

The smart meter rollout was put on hold for a few months as the energy sector focused on the issues raised and the customer needs generated by the pandemic. Now, with the UK government easing lockdown restrictions, Ofgem is hoping to kickstart the rollout.

New targets were outlined last month with energy suppliers granted an extra six months to ensure that they’ve taken all reasonable measures to install as many smart meters into households and small businesses as they can.  The new deadline for suppliers to hit their installation targets is now July 2021.

Beset with issues

The smart meter rollout has been beset with issues, so much so that the government has pushed back target dates and lowered its target for coverage to 85%, a figure that many suppliers still believe is too ambitious.

The biggest challenge faced by energy suppliers is convincing consumers to have a smart meter installed.

There is a wealth of misinformation online and claims that they are harmful to health and they can be used to spy on consumers.

These concerns, for example, can be debunked by explaining that smart meters communicate with your energy supplier via a secure wireless network built and maintained by the Data Communications Company (DCC).

There are even groups online that actively campaign against them so the best way to fight disinformation is for energy suppliers to provide facts and to understand a customer’s concerns. By communicating with consumers to discover why they are deterred from having a meter installed you can then understand what needs to be done to convince them.

So far, 21.5 million smart meters have been installed in the UK to date, with 17.3 million still in “smart” mode. Several million older-technology SMETS1 million meters have gone “dumb” when consumer switched energy suppliers.

There’s no denying that the smart meter rollout could have gone better. The issues with SMETS1 meters being a big one. Energy suppliers need to be able to explain the differences between the different types of meters and explain their benefits.

Further Reading

Are Emergency VAT cuts on the way? What will this mean for Energy suppliers and Energy Billing?

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Ofgem plans new measures to help the most vulnerable and looks set to backtrack on scrapping short-haul gas tariff

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For more information on how to start and manage an energy company, get in touch with Dyball Associates today.