Government lacking clarity on smart meter benefits

The Science and Technology Committee has reported that the Government has been ambiguous on the benefits of smart meters. The Government has 11 different objectives for the roll out project. These benefits include saving consumers money on energy costs. However in reality, the savings to individuals is expected to be minimal. The major advantage is that smart meters are intended to be the start of a smarter energy system where energy security is enhanced and pollution is reduced by optimising generation and supply.

Dr Tania Mathias, interim Chair of the Committee, said:

"It would be easy to dismiss the smart meter project as an inefficient way of saving a small amount of money on energy bills, but the evidence suggests there are major national benefits, including establishing a smarter, more energy secure grid. The Government needs to have more clarity around this so householders are clear about the true benefits."

"The smart meter mass rollout has been delayed, but the Government and suppliers must not skimp on engaging with customers in the rush to fit 50 million more meters by 2020. The evidence shows that homeowners and businesses need to receive tailored advice about how they can benefit from smart metering. The 'smartness' comes from what customers can do with them—fit and forget would be a wasted opportunity."

"The Government has known for years that early smart meters can lose their smartness if the customer switches supplier. Ministers merely have an ‘ambition’ to fix this by 2020. Taxpayers will be unimpressed with this situation, and timely action is needed."

"GCHQ's involvement in designing the security for the smart metering system gives confidence that security is being taken seriously, but the Government will need to do more to convince and reassure customers that the technology is safe from being hacked."

"Evidence should be at the heart of Government policy. It is a serious concern that the Government struggled to respond to our requests for evidence, and this can weaken trust in the Government. Whitehall needs to improve how it communicates its evidence base and hopefully will learn from this exercise."