Utility Week

28 | 7TH - 13TH SEPTEMBER 2018 | UTILITY WEEK Customers Analysis T he public's resistance to the smart meter rollout is growing, according to the latest research for Utility Week car- ried out by Harris Interactive. The research found 31 per cent of respondents were not interested in getting a smart meter, which was up from 25 per cent when the previous wave of research was car- ried out in November 2017, and 28 per cent this time last year. Suppliers have been told by the govern- ment to "take all reasonable steps" to try to install smart meters in all the UK's 50 million homes and businesses by the end of 2020. If they fail to do enough, they face fines of up to 10 per cent of their worldwide turnover, which, in the case of the big six, means fines could total £7 billion. The Harris research of 1,000 consumers showed that three in ten of those who say they have not been offered a smart meter or have been offered the opportunity to have one but have decided against the installation are simply not interested. This an increase from a quarter of respondents who answered the same ques- tion the same way in the last wave of research in November. In addition, the proportion of this group who like the idea of getting a smart meter has also fallen in the past six months, down to 45 per cent from 52 per cent. The research is aimed at understanding the experience of those who have a smart meter installed and gleaning the sentiments of those who haven't. It revealed that 8 per cent of consumers are worried about having a smart meter installed. Responding to the results, Mark Brenton of Harris Interactive says: "This research shows that over four in ten of those offered a smart meter have not had one installed yet, which suggests there is still a general apathy among consumers around smart meters." Added to this, a significantly lower pro- portion of this group said they liked the idea of getting one installed compared with the last wave. But worryingly, although those who have a smart meter say they are more interested in energy use, still only three in ten are saying they have enjoyed saving money on their energy bills since getting one installed and there are still three in ten say- ing the smart meter has had no impact. Brenton says: "This continues to show that further evidence might be needed, ide- ally financial, to convince the majority who still don't have a smart meter that getting one is worthwhile." The report concludes that the primary challenge is coming up with a compelling reason to persuade non-smart meter own- ers to get one installed. Only three in ten of those with a smart meter say they have saved money on their energy bills as a result, and around the same number still say the smart meter has had no impact. And in further damning news for the rollout, it emerged in July that smart meters will save customers just £11 a year on their energy bills because of delays and rising costs, according to a report by The British Infrastructure Group (BIG). The BIG, a group of MPs and lords who work to promote better infrastructure across the UK, said delays and rising costs meant the net benefit of the national smart meter rollout has fallen, and the anticipated sav- ing on an annual dual fuel bill in 2020 will be just £11, rather than the £26 previously reported. On a more encouraging note, the findings also show that the proportion of consumers having been offered a smart meter, as well as those choosing to have one installed, is increasing slightly. However, more than four in ten of those who have been offered a smart meter have not yet had one installed. And overall the experiences of those who have had a smart meter installed appears to be similarly positive as those seen in the pre- vious wave, with three-quarters of consum- ers liking the idea of getting a smart meter. Concerns over installation are still appar- ent but not increasing. Fewer than one in ten now claim they needed a second visit to have their smart meter installed, and the same proportion as the last wave (16 per cent) say they experienced billing problems aer installing a meter. These issues have not subsided since the last wave, which would suggest they still need to be monitored moving forwards, to ensure they do not hamper the smart mater rollout unnecessarily. This is an extract of the full report available to subscribers online as premium content of utilityweek.co.uk Smart rollout is slow going A bad press and consumer ignorance continue to make the rollout of smart meters an uphill challenge for energy retailers, finds the latest Utility Week and Harris Interactive research. Smart meter installations hit 12 million Figures released by the Department of Busi- ness, Energy and Industrial Strategy this week show there are more than 12 million smart and advanced meters operating in homes and busi- nesses in the UK. The second quarter of 2018 (to June) showed a rise of 9 per cent on the first quarter, with more than 1.2 million smart meters installed. This was nearly 200,000 more than were installed in the same quarter last year. The lion's share (10 million-plus) of total smart meter installations are accounted for by the big six energy suppliers (see graph). Responding to the figures, Gillian Guy, chief executive of Citizens Advice, said the rollout would have to be completed at an "increasingly unrealistic pace" to meet the 2020 deadline and she reiterated a call to extend the deadline by three years. She said the "compressed time- line" could lead to a poor customer experience and undermine the rollout. British Gas, 6.2m SSE, 1m Scottish Power, 1m EDF, 0.75m Npower, 0.4m Smart meter installations by the big six Eon, 1.2m Total = 10.55 million Source: Utility Week research

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