Smart Meters Bill

Maggie Throup Excerpts

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

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Thank you, Mr Deputy Speaker. You and I am sure the House will be relieved to hear that I am going to keep my remarks on Report very brief, because there will be another opportunity to speak and we are all keen, interested and excited to get to Third Reading.

I want to make one or two comments about new clauses 2 and 3, which are very important. I genuinely feel that the deadline to complete the roll-out by 2020 is simply not realistic. Beyond that, I am genuinely concerned that aggressive tactics have been deployed, and the fact that the energy companies face heavy fines if they do not meet this 2020 deadline only makes this more concerning. As I have said to the Minister, I feel there is a genuine conflict between best practice in rolling out smart meters to consumers and the potential penalties imposed on companies that do not meet the targets for the roll-out.

I am very concerned about the deadline of 2020 because the data show that, as of June 2017, only about 7.7 million smart meters had been installed out of a target of about 60 million premises. We know that the first generation of smart meters revealed some issues, and it is not yet clear whether there will be similar issues with the deployment of the second generation. In Scotland, many flats and tenements have banks of meters installed in communal areas, and there does not seem to be a solution for the installation of smart meters in those cases.

New clause 4 would require the Secretary of State to publish details about the cost and progress of the smart meter roll-out with reference to the 2020 deadline, which is very important. It is worth remembering that the cost of smart meters is £11 billion and rising, and that cost is borne by every single household. Not every single household is necessarily told that when they are contacted, but it is important to put it on the record.

Smart Energy GB has referred to a Government cost-benefit analysis. Everyone in the House agrees that there are cost benefits, but the figure of £11 billion is one to watch closely. The UK Government must be transparent and publish the cost and progress of the roll-out, given that the 2020 deadline seems unrealistic to many people, myself included. It seems clear to me that the deadline ought to be reviewed, so that the roll-out is completed efficiently and shields consumers from unfair tariff rises. I urge the Minister to take on board these comments. I will say no more about the other new clauses—time is short, and I will let other Members speak—but I look forward to Third Reading.

[Maggie Throup (Erewash) (Con)]

I want to specifically oppose new clause 5. Although I have some sympathy with its intentions, I am concerned that, by including the cost of the smart meter implementation programme in billing, there is a danger of misleading consumers about the cost-benefits of the roll-out, as well as of detracting from the overwhelmingly positive impact that the programme will have on consumers’ ability both to monitor their energy use and to manage the cost of their bills in the long term. The programme is clearly in the best interests of the consumer, yielding £1.50 of savings for every £1 invested. Furthermore, I am satisfied that the cost of the overall project is already available to consumers, and has been scrutinised both by Parliament and in the detailed impact assessment carried out by the Department.

I firmly believe that what consumers such as those in my constituency really care about is the savings that can be achieved by having a smart meter installed. By having near real-time information about energy consumption displayed in the home, consumers will for the first time be able to manage their usage properly. If done correctly, that will result in a pounds, shillings and pence saving on their energy bills. I apologise for using pounds, shillings and pence, but it has a big impact. On reflection, the new clause does little to improve the quality of the Bill and I am unable to support it.

In summary, it is clear that smart metering is central to the wider energy revolution currently taking place in Britain, and I commend the Government for the action they have already taken to ensure that we have a cleaner, cheaper and more secure energy future. I am pleased to support the Bill tonight in its unamended form, and I congratulate the Minister and his team on piloting it to this stage.

[Steve McCabe]

As they say, Mr Deputy Speaker, I will try that again.

Amendments 2 and 3 would give the Secretary of State the power to license and regulate meter asset providers—or MAPs, as they are more commonly known. They are independent companies that secure funding and provide asset management and meter disposal on behalf of the energy companies. They are the middlemen who have come to play a very dominant role in the development of the Government’s smart meter strategy. We might think of them as being to smart meters what football agents are to the world of football.