Question

To ask the Secretary of State for Energy and Climate Change, what proportion of in-home displays need to remain in operation after installation for the smart metering implementation programme to have the potential to deliver overall economic benefit for customers and energy providers.

DECC’s most recent Impact Assessment for the roll-out of smart metering, published in January 2014, estimates a positive net present benefit of £6.2 billion over the period to 2030, with total benefits of £17.1 billion and costs of £10.9 billion.

Of the £17.1 billion of overall benefits around one third stems from energy savings, for which the In Home Displays (IHDs) are a critical enabler. They are an important first step in wider consumer engagement and behaviour change that can unlock additional economic benefit, for example through the development of a smart grid and more flexible and resilient future energy system.

Smart metering also enables significant operational efficiency savings within the energy industry, so even without the energy savings benefits the Smart Metering Implementation Programme has the potential to deliver overall economic benefit for UK customers and energy providers.