3 Conclusion
40. While progress has been made since we first
looked at the Government's smart meter programme in 2013, we do
not believe that near universal smart meter roll-out will be achieved
by 2020. Long-known technical challenges of multiple occupancy
and tall buildings should have been resolved by now. Other technical
issues around interoperability such as the migration from SMETS
1 to SMETS 2 lack a clear plan for resolution and the DCC delay
has damaged confidence in the programme. The slow start to full
engagement with the public means Smart Energy GB must now step
up delivery of their communications programme. We want the Government
to remain ambitious about securing the maximum benefits from smart
meters as soon as possible, particularly in relation to energy
efficiency and consumer bills. The Government must monitor the
impact of the programme to ensure that low income households,
in particular, are benefitting. However, the benefits of smart
meters will only be fully realised if the Government sets and
keeps within a budget limit on the cost of the overall programme.
We also consider that the Government should publish the Major
Project Authority's assessments of the smart-meter programme.
41. Without significant and immediate change to
the present policy, the programme runs the risk of falling far
short of expectations. At worst it could prove to be a costly
failure. The Government is at a crossroads in relation to smart
meter roll-out. All the problems which we have identified are
symptomatic of a national programme whose management the Government
has left largely to suppliers. The Government must give serious
consideration to whether or not it is possible to reduce costs
to consumers by streamlining the roll-out of smart-meters, perhaps
through more active participation of DNOs. The Government must
also take a more active role in driving forward the industry-led
roll-out, seeking and facilitating industry-wide solutions to
the technical challenges that remain. Getting it right will eventually
cut energy usage and bills for 30 million homes and businesses
in the UK. Getting it wrong risks embarrassment for the Government
through public disengagement with a flagship energy policy and
a costly missed opportunity.
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