Smart Meters Bill

Jim Shannon Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 5th February 2018 Commons Chamber

[Dr Whitehead]

Like me, the hon. Gentleman sat through many of the evidence sessions during the Committee stage, so he will know that an advanced programme is in place to ensure that SMETS 1 meters are compatible and interoperable, and indeed can work online, to ensure that that problem does not occur. That is a recent development. I agree that if it turns out that many SMETS 1 meters become completely dumb, that might be a problem for the overall roll-out. Perhaps the Minister will have something to say about that later, because it is important that we get this right.

[Jim Shannon (Strangford) (DUP)]

Following on from the previous intervention, does the hon. Gentleman believe that consumers’ concerns about their ability to switch energy suppliers smoothly to keep costs down, and about keeping the system going and keeping providers “on their toes”, are adequately addressed in the Bill, because some people say that they are not?

[Dr Whitehead]

I will come on to talk about how far more SMETS 1 meters have been installed than was ever intended, which was due to various reasons. The hon. Gentleman is certainly right that if a substantial number of installations eventually give rise to non-smooth transfers when people want to switch, that will be deleterious to the roll-out as a whole. Indeed, that is something that needs to be very carefully and urgently addressed so that we ensure that such switchovers can be as smooth as possible.

When we think about the roll-out, we do not need to look very far into the timescale to conclude that, whatever might be said about the numbers already installed, it is not going well. We are more than halfway through the period originally specified for the mass installation of smart meters, but we are far below halfway towards the target of installing smart meters in 30 million homes. In fact, the latest quarterly installation figures show that only 8.6 million domestic and non-domestic meters have been installed to date. That issue has been exacerbated by the transition from SMETS 1 to SMETS 2 meters. SMETS 1 meters were supposed to be essentially proving meters that would have very little role to play in the overall process. However, the DCC—the body required to set up and implement all the communications systems to allow meters to talk to the system—is now two and a half years behind in going live, and is still not really functioning as intended. Millions of SMETS 1 meters have therefore been installed to make up the gap before SMETS 2 meters can come on stream, and we are still in a precarious position with regard to the new meters, because end-to-end testing of them is still not really available. A programme that should by now have seen the installation of a few SMETS 1 meters and millions of SMETS 2 meters now has the opposite position. To be precise, when I asked the head of the DCC how many SMETS 2 meters had been installed, the figure he gave was 250.