Smart Meters Bill (Second sitting)

Bill Grant Excerpts

Committee Debate: 2nd Sitting: House of Commons
Tuesday 21st November 2017 Public Bill Committees

[Matt Western]

Q There is a massive issue here, isn’t there?

Derek Lickorish: Yes, there is.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Q I am still enthusiastic about the potential for smart meters and there is still will behind it. I am trying to make a comparison and I come back to the 1970s, to the introduction of natural gas. They are two different technologies but a massive task throughout the United Kingdom. We mentioned two dates: 2020 was the desirable date and you wish that to be retained, although there was a fall-back date of 2023. At some time in this journey we are going to have to speed up the process. We are going to have to pull our socks up and get the job done. I have two questions in that regard. Do we have the production capacity for SMETS 2 meters to meet the demand when it is at its peak, and do we have sufficient human resources to install those meters commercially, hopefully to meet the target of 2020, but perhaps more realistically at a date beyond that? How are we for capacity: human resources and production capacity?

Richard Wiles: We manufacture SMETS 1 and SMETS 2 devices. We are prepared to ramp up our production line to make sure that SMETS 1 can run in parallel to ensure that any potential shortfalls in capacity can be overcome by our increased production. We can continue to keep the momentum and supply chain running in that respect. Regarding installers, by the end of SMETS 1, we are probably looking at around 12 million devices. If the current installation rate continues through to July next year, that equates to around 1.3 million smart meters per month that need to be installed.

Whether we need additional installers is something that Trilliant has not supplied services on, other than installation processes, but organisations are geared up to supply the installation requirement for SMETS 1 and SMETS 2 to meet that deadline.

[Bill Grant]

Q So you are confident in the supply chain for meters, but not so confident in the human resources for installation?

Richard Wiles: Looking at the existing number that I have been made aware of, that may need to be increased. There may need to be additional practices and we need to ensure that whoever wants a smart meter gets it installed in time by 2020.

Derek Lickorish: It has been worked out for me—it says so here—that the additional resources to meet 2020 need to increase from where they are today by 283%. They need to be ready now to start running to meet 2020. I do not think that is possible because these need to be highly trained people. This is not a straightforward job for an electrician; it is more complicated than that. Before I come to resources, the current productivity rate of the teams working out there is less than half what was originally thought. You have to take that into consideration; it is not factored into my 283% increase.

As for manufacturing, subject to clarity about the SMETS 1 end date, because the supply chain is already winding down for that now, if clarity could be given on that, it would ensure that that manufacturing stream was kept running.

On manufacturing capacity for SMETS 2, once you have resolved the interoperability, once you have SMDA approval, once you have tested all these devices at scale, with DCC, it must be about 12 months. Anything less would have the potential to lock in problems for the future because of the model we have chosen. It is a difficult one to answer, but if we satisfy that, there is no reason why manufacturing capacity will not be available.

[The Chair]

Thank you. If we can keep the answers brief, we will be able to get in Mr Carden and Mr Morris.

--- Later in debate ---

[The Chair]

Time is against us, so Mr Grant’s will have to be the last question.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Q I will take a quick virtual imaginary journey to November 2022 when we have maxed out on the installation of smart meters, everybody is happy and they are working. Notwithstanding the consumer benefits, what would be the benefits to the wider environmental community? What would be the environmental benefits in relation to carbon reduction from the installation of a full roll-out of these meters? Or is there no benefit whatever to the environment?

Dr Sarah Darby: Potentially, this is part of a very big transformation of our energy system. If we are relying heavily on renewable supply, particularly for electricity, we have to be able to match demand with supply in real time very effectively. The smart meters are part of making that possible. That means effectively that they are part of the transition to a renewables-based energy system with very carefully managed demand and supply together. The environmental benefits of that would be very considerable.

[Bill Grant]

Q So there will be a considerable environmental effect.

Dr Sarah Darby: Yes.

[Bill Grant]

Q We are all fond of our environment and the planet, and we need to keep them for generations to come, so that is a stepping stone on a very positive journey.

Dr Sarah Darby: Yes, I would think so.

Dr Richard Fitton: I would add one point. The smart meter is a tool as well and from that tool we can hang things. With it comes this whole idea of being able to attach more efficient things for your home, such as appliances and heating systems. Once it gets in the house, people can then start to do smart things with it. You have got to consider those savings as well as the generic smart meter savings.

[The Chair]

Mr Western: 20 seconds.