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Utility Week 6th September 2019

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UTILITY WEEK | 6TH - 12TH SEPTEMBER 2019 | 9 Policy & Regulation the deadline to be met, which is simply not going to happen." Earl further argues that confidence has been eroded by the "slipshod" rollout, with frequent reports of meters not working – particularly when a household switches supplier. Under the terms of the rollout, suppliers are required by law to take all reasonable steps to install the devices to all homes and businesses by 2020. To this end, suppliers set individual annual targets for device installations, with Ofgem monitoring performances. However, enforcement action has been taken recently against two big six suppliers, SSE and EDF, which paid over £1 million between them into Ofgem's consumer redress fund for failing to hit their smart meter targets. Technology problems Yet recent analysis from Uswitch suggests that even second-generation (SMETS2) devices are throwing up problems. Furthermore, the research claims that 39 per cent of device owners have had problems with smart displays not working, while 32 per cent said their device "went dumb" aŽer switching energy supplier. Some (13 per cent) reported meters ceasing to function entirely. Of those with SMETS2 devices, 33 per cent said they encountered issues aŽer installation. Responding to Utility Week's request for comment, a BEIS spokesperson urged customers facing problems with their in-home display to contact their supplier. BEIS says: "The replacement of traditional gas and electricity meters with smart meters is a vital national energy infrastructure upgrade that will make our energy system cheaper and more efficient for consumers. "Anyone experiencing problems with their in-home display should contact their supplier, which is obliged to replace it free of charge if it's not working properly. "With more than 14 million smart and advanced meters now operating across Great Britain, millions of consumers are already benefitting from having a smart meter, including reducing their energy bills and getting access to more competitive tariffs." At this point it is difficult to say what the fate of the rollout is, with the only real likely outcome that the deadline is not going to be hit. BEIS would not be drawn on the fate of the deadline and whether it will be scrapped. Earl adds: "As the 2020 deadline looms, the threat of fines from the regulator for those energy companies not delivering will only add fuel to the fire." It is hard to disagree. SMART METER INSTALLATIONS TOTAL NUMBER OF SMART METERS OPERATING OVER A QUARTER OF DOMESTIC METERS ARE SMART A THIRD OF NON-DOMESTIC METERS ARE SMART OR ADVANCED All smart meters Domestic meters operated by large suppliers Non-domestic meters operated by large suppliers Q2 2019, millions 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 0 5 10 15 20 25 Q2 2019, millions Smart meters 7.7 Smart meters 5.7 Non-smart meters 15.5 Non-smart meters 18.0 Electricity 25.7m meters 13.4m Q3 2012 to Q2 2019, millions Source: energy suppliers reporting to BEIS Source: energy suppliers reporting to BEIS Source: energy suppliers reporting to BEIS 16 14 12 10 8 6 4 2 0 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 Q2 2017 Q4 2017 Q2 2018 Q4 2018 Q2 2019 Total operating Gas 21.2m meters Smart/advanced 0.7 0.1 Non-smart meters 1.2 Electricity 1.9m meters Gas 0.4m meters 0.3 7.7m 5.7m

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