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The Topic: Smart metering UTILITY WEEK | 27TH JANUARY - 2ND FEBRUARY 2017 | 15 COUNTING THE COST The cost of the rollout of smart electricity and gas meters is a cause for concern. Government and Smart Energy GB are sticking by the initial cost estimate set out in the 2014 impact assessment for the programme of just under £11 billion. This estimate was made before the multiple delays to the Data Communications Company (DCC) network, which saw its go-live date fall back from December 2015 in the original plan to November 2016. Baringa partner Stephen Haw describes the goal of fitting more than 50 million meters by 2020 as "still a challenging one", while PwC global leader for smart energy Steve Mullins is also concerned about the volume required in the timeframe. "The thing you can be really sure about is that because of the volumes of meters, a lot of the scenarios you can dream up, and probably a lot you could never dream up, are going to happen and potentially cause a lot of problems," he says. These issues, coupled with a shortage of engineer- ing staff and the ever-decreasing timeframe, have led to concerns that the cost of the programme will increase. For instance, Citizens Advice chief executive Gillian Guy warns of cost increases, and a reduction in the assumed benefits. "[Delays] could make the overall project more expensive and hit consumers with higher bills down the line. "It's crucial that the government is clear on whether the compressed timetable for installation will result in additional costs to consumers." The Institute of Directors estimates the smart meter programme will add approximately £400 to each cus- tomer's energy bill, while British Gas trials have revealed annual savings for smart meter customers are on aver- age 2 per cent, or £26. The government puts the cost per household of installing smart meters at £214.50, while Smart Energy GB director of communications Claire Maugham insists the savings are still deliverable. She states that savings will come through changing energy usage, automatic meter readings, and easier management of the energy network. "I think we are in the position where you've got to take a fairly deep breath, pause, and only fire the starting gun when you can be sure that things will proceed in reasonably good order thereafter." • Shadow energy minister Alan Whitehead NEXT TOPIC: SMART SYSTEMS Above and beyond smart technologies at a customer level, utilities are developing and deploying smart technologies themselves. The smart city also aims to develop to make the low-carbon transition easier, and more cost efficient, for utilities and their customers. This includes the adoption of low-carbon technologies and the wider deployment of electric vehicles and energy storage solutions. The government is also in the middle of a consultation on smart and flexible power systems. The next Topic will look at the development of smart systems and how the utility sector is adapting. U nlike the energy sector, in water smart metering is something that has been le to the discretion of compa- nies. Thames Water and Anglian Water have taken up the mantle and are installing them, while many others are not. Thames began its industry-first rollout of smart meters in February 2014, with the aim of metering all 3.3 million properties it supplies. The £300 million programme of works is estimated to be completed by 2030, and it has been targeting London first because that is where its water resources are tightest. Thames claims its metered customers generally use 12 per cent less water than those who are unmetered and that the data from the 100,000 smart meters it has installed so far has been revolutionary. Thames Water's former chief financial officer, Stuart Siddall, said: "We go and see our engineers and they're excited by the information they're getting and the way they are going to be able to run the networks dif- ferently with the information they're going to get from something like smart metering." Anglian Water began its smart water metering fixed network trial as part of its plans for a long-term smart metering pro- gramme in July 2016. It installed 7,500 smart water meters in and around Newmarket in Suffolk. It hopes the four-year trial will achieve a 100 per cent customer satisfaction rate, ensure no bursts or leakage, and reduce water consumption to 80 litres per head, per day. Anglian water programme manager Paul Glass said: "Smart metering has a key role to play in giving our customers access to information about their water use – helping them to understand how much water they are using, and therefore how to reduce their consumption and bills. In combination with our efforts on the wider network, this will help secure water supplies for the future." The water sector is taking small steps in adopting smart meters, with companies in more water-stressed areas making the early moves. Unlike the energy sector, there is no government-mandated rollout, so customer demand, and environmental pressure, will need to drive the programme forward. There remains a long way to go. Comment: Thames and Anglian blaze a trail for smart metering in the water sector CONSUMER ATTITUDES TO THE ROLLOUT SO FAR 44% 44% of consumers say their energy bills have reduced after having a smart meter installed 20% Nearly one in five consumers have experienced a delay in having a smart meter installed because of a lack of available engineers 33% A third of consumers are concerned about the lack of trained engineers because it means they could be missing out on savings 53% More than half of consumers would be happy to share current and historic energy use data with price comparison websites to compare tariffs 52% More than half of consumers think energy companies should pay engineers to be trained in "smart skills, compared with 21% who believe the government should pay 15% 15% of consumers are concerned that the skills gap could delay meeting EU carbon emissions targets Source: Ecta Training