Government must cut smart meter costs

Which? has recently written to Energy Secretary, Ed Davey calling him to reduce the cost of the smart meter rollout. The rollout is due to commence at the end of 2015 at a total programme cost of £10.9 billion. Smart meters will be installed in every UK home by 2020.

Which? has launched its Fix the Big Six campaign calling the Government to act now to control cost. It has recommended to the energy companies the following three measures:

1. A centralized procurement of meters to bring down the cost via economies of scale.

2. An efficient approach to purchase and installation communications infrastructure in multi-occupancy buildings to minimize disruption and cost.

3. Guidance to suppliers on the approach to implementing smart meters by 2020 and for this to be delivered at an early stage to avoid unnecessary cost for the roll-out.

Executive Director of Which?, Richard Lloyd said:

“Without immediate action the cost of the smart meter rollout is in danger of spiralling out of control, while consumers foot the bill. The energy market is undergoing a full scale investigation, so the Government cannot expect competition alone will keep costs low. Major reforms are needed to Fix the Big Six and restore trust in this broken market. At a time when energy bills continue to squeeze household budgets, the Government must urgently explore ways to ensure consumers get value for money from the smart meter rollout.”