Smart Metering: Electricity and Gas

Carol Monaghan Excerpts

Thursday 9th February 2017 Westminster Hall

[Carol Monaghan (Glasgow North West) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Turner. I thank the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe) for securing this debate. I have learned this afternoon that there are two things I need to see: first, the ITV documentary, if I can get it on catch up; and, secondly, Gaz and Leccy, which I have not seen, but then again I do not watch television—that is my excuse and I will stick to it. It is interesting that the documentary said that energy companies have so far been the biggest beneficiaries of smart meters. That fact was reflected in the comments of several hon. Members.

Smart meters were billed as transformational—they were going to revolutionise the way we use and monitor energy—but, a number of years into the smart meter roll-out, it seems that the benefits to consumers are limited and amount to a few pounds a year. The cost of the roll-out—£10.9 billion, or £215 per household—certainly seems far greater than any of the benefits. The hon. Member for Blackley and Broughton (Graham Stringer) talked about the different price in parts of Europe where similar schemes have been rolled out at a much lower cost. We need to look at that.

There are great benefits to using smart meters. Up-to-date billing allows consumers to spread the cost of their energy use, which can be very important in tackling fuel poverty, and the real-time usage information allows consumers to monitor what is going on. One of the things we do with our smart meter at home—these are the great games that we play as we do not have a television—is to see how we can reduce the house’s energy consumption by going round switching things off and seeing what difference it makes. It is incredible to see the difference that switching on a kettle can make. Things such as that can make consumers think more carefully about how they use energy, so it does have benefits. Meter data can be used to smooth demand on the grid, as the hon. Member for South Basildon and East Thurrock spoke about in detail.

There are lots of challenges to the roll-out. The fact that the mobile phone network is being used to relay the information to the energy companies is problematic in some areas, and completely restrictive to the point of not working, as we have heard, in others. We know that that is a problem in rural areas—the hon. Member for St Ives (Derek Thomas) said that he has to take a photograph and send it to the energy company. The roll-out will obviously be more challenging in rural areas—I am thinking about the highlands and islands of Scotland in particular. It is easy to install a lot of meters in an area of high population density, but it is more difficult when people are scattered widely across an area.

The hon. Member for Blackley and Broughton mentioned flats and offices. That is an ongoing issue, which has to be looked at far more seriously than it is at the moment. The lack of qualified installers means it will be a challenge to reach the 2020 target, which the hon. Member for St Ives spoke about. I visited Scottish Gas’s training centre in Hamilton near Glasgow a few months ago. I saw smart meter installers being trained, and I looked at the equipment they use. Scottish Gas has lots of apprentices, and they are being trained not only in installation but in customer service and engagement. I am not sure every consumer gets service as good as those installers are being trained to provide.

A number of hon. Members mentioned the issue of data. Obviously, data can be used by energy companies to monitor consumption, but in our inquiry the Science and Technology Committee looked at the issue of who, other than the energy companies, is able to access the data. We asked whether, for example, somebody would be able to see that a person’s energy consumption had dropped, and therefore infer that they were not at home or on holiday. My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) raised the issue of GCHQ’s intervention in smart meter technology.

We know that certain demographics are more reluctant to engage with technology—I am thinking of elderly people in particular. Some of these meters are extremely user-friendly, but that is not always the case. The hon. Member for South Basildon and East Thurrock talked in great detail about the difficulties with SMETS 1 meters—first-generation meters. The problem is not just the incompatibility of those meters. There is also the issue that some of the new meters being installed are of a far lower standard than others. There is great variety in the meters that are being installed. The ones that I saw at Scottish Gas were all-singing, all-dancing, and could probably make a cup of tea as well, but the meter I have got is far less interactive. There is a real danger—we have seen this happen—that after a short time people toss the meter, or at least the display unit, in a drawer or a cupboard somewhere.

[Dr Tania Mathias (Twickenham) (Con)]

I agree with all the hon. Lady’s points. I do not think this issue was covered in our Committee’s report, but is she concerned that the cost of a second meter falls on the customer? The report shows that there is not enough advantage for the customer, compared with the energy companies.

[Carol Monaghan]

Absolutely. As I said at the start of my speech, the energy companies are the biggest beneficiaries of the smart metering programme. If a customer has to pay another £250 for a second meter because they have changed suppliers, it makes changing too costly. The hon. Member for Blackley and Broughton talked about the use of smartphones as a display, instead of using the units. Perhaps that is something for the future.

Fuel poverty was mentioned by a number of speakers, including my hon. Friend the Member for North Ayrshire and Arran and the hon. Member for St Ives. The hon. Gentleman talked about vulnerable consumers seeing the amount of energy they were using and possibly being unwilling to heat their homes. That is a danger, but the biggest danger in that case is possibly the cost of energy and fuel poverty, rather than the meter.

To finish, I have a few questions for the Minister. First, what support will there be for people who have first-generation meters that could be obsolete even before the 2020 roll-out? Secondly, what will the Government do to increase consumer engagement, to make people more energy savvy and allow them to see how best to use their meter? Thirdly, will the Minister reassure all of us that the 2020 target for smart meter roll-out must not be met at the expense of the consumer?