Energy and Climate Change CommitteeSupplementary written evidence submitted by Baroness Verma, DECC

Further to my letter of 10 June 2013, you asked for some further detail on the issues raised by the Committee.

In relation to additional extra functionality, SMETS2 will make provision for:

registers in electricity meters to record the maximum demand (the highest demand value in a given period of time and used by distribution network operators to help plan and manage load on the network);

variant electricity meters which reflect the non-standard arrangements currently used by nearly 5 million premises (eg those on Economy 7 tariffs); and

randomisation offset capabilities, which allow meter switching times between tariffs to be randomised over a short period of time (c.f. switching all at once) to help avoid risks of power surges.

In relation to SMETS 1 meters you asked about compatibility with future smart appliances and demand response technology. SMETS1 does not specify detailed Home Area Network (HAN) requirements, but it does mandate the use of open standards for the HAN. This means that appliance manufacturers have full access to any SMETS1 standards when designing their products or other demand response technology. Information provided by industry stakeholders indicates that the majority of meter manufacturers have employed a single set of standards.

You asked whether it cost suppliers more to operate pre-SMETS 2 smart meters when they take them over from other suppliers than it will cost them to operate SMETS 2 meters when they take these over. We believe that there are important benefits from being able to enrol SMETS1 equipment into the DCC. We are currently consulting on the approach to allocating costs for that enrolment. Where SMETS1 meters are not enrolled in the DCC, the unit costs will depend on the contractual arrangements between the relevant suppliers, their service and meter asset providers. We are also consulting on the change of supplier arrangements that should apply during the Foundation period.

Finally, you asked about the situation for customers where the In Home Device (IHD) may not work properly due to problems with HAN connectivity, including the around 30% of properties which may not be served by the 2.4Ghz solution. Development work is underway on an 868MHz solution which is expected to provide HAN connectivity options for the large majority of the remaining properties. Work is also taking place on alternative HAN options for more challenging properties such as, in particular, some high rise flats. This includes solutions where signals will be passed along existing wiring in buildings.

June 2013