Utility Week

26 | 1ST - 7TH DECEMBER 2017 | UTILITY WEEK Customers Analysis B ritish Gas won the race to roll out SMETS2 last month when it announced it had installed a second-generation smart meter before any of the other suppli- ers. Now Npower and Eon have announced trials too – but what stage are they all at, how did they manage to get there first and how can others follow suit? The first SMETS2 meter was installed by British Gas in August, in a semi-detached house in Surbiton, South London, as part of a consumer trial which the supplier has since said will provide the foundations for the large-scale deployment of SMETS2 meters next year. Following British Gas's triumphant announcement of its SMETS2 milestone, fellow big six suppliers Npower and Eon were quick to confirm that they too will trial SMETS2 meters in customer homes this year, with wider rollouts going ahead in 2018. Good news. But it has been a long time coming. It was in 2009 that then-energy sec- retary Ed Miliband announced that the UK would embrace smart meters. He said: "Smart meters will empower all consumers to moni- tor their energy use and make reductions in energy consumption and carbon emissions. They will also mean the end of inaccurate bills and estimated meter readings." Now, eight years down the line, the mass rollout of fully capable smart meters in homes and small businesses across the UK still has yet to build up a head of steam. And doubts about whether the structure and technology specifications behind the pro- gramme are fit for purpose, have refused to fall away. What's the big idea? SMETS2 meters offer functionality that is critical to the success of the smart meter roll- out and the delivery of its value case for both customers and the energy industry. Core SMETS2 functionality includes pro- viding "first gasp" and "last breath" notifi- cations to network operators of outages and supply restoration. It also includes completely transparent billing for custom- ers, and seamless switching between sup- pliers. However, this ideal is far from being a reality – despite the advanced stage of the rollout, with its looming 2020 deadline for completion. Today, millions of early generation and SMETS1 meters are in the field and more are being deployed every day as suppliers work to keep up with the rollout targets and final testing of SMETS2 meters grinds on. The high penetration of SMETS1 and SMETS1-capable meters in the field, cou- pled with persistent challenges in bringing SMETS2 meters to market, is problematic for a number of reasons. For suppliers and customers it means a sub-optimal smart experience, with ham- pered switching (around 65 per cent of con- sumers who have tried to switch supplier post-smart meter installation have lost smart functionality, according to recent Utility Week research), and the lingering concern of DCC enrolment challenges down the line. For energy companies, it also means a continued need to support the higher tech- nology and installation costs of SMETS1 meters while SMETS2 niggles are worked out. And the need to keep meeting targets also poses a growing risk of stranded SMETS1 assets as the cut off date for their deploy- ment – June 2018 – approaches. In response to the latter issue, the Depart- ment for Business, Energy and Industrial Strategy recently launched a consultation to gain industry feedback on possible ways in which it could soen the SMETS2 transition deadline. It has suggested possible deroga- tion arrangement for suppliers rolling out SMETS1 at scale, in order to avoid supply chain inefficiencies and, crucially, any stall- ing of deployment. But this potential reprieve does little to ease the urgency with which suppliers are working to achieve the long-anticipated offer of truly smart meters. Here, Utility Week explores what three suppliers are doing to forge ahead with the transition. The race to install SMETS2 British Gas won the race to roll out SMETS2 last month when it announced it had installed a second-generation smart meter. But the industry is far from home and dry. Alice Cooke reports. British Gas Catherine O'Kelly, industry development direc- tor at British Gas, says the company "made a strategic decision to invest in the programme early during its foundation stage to help our customers benefit as soon as possible". She says it was this but also the company's rigorous training programme and attention to detail that meant it was able to be the first past the post: "We have worked closely with the DCC [Data and Communications Company] and our meter manufacturers through a flexible and agile testing programme to ensure our readi- ness to install SMETS2 meters." As to the timings for the SMETS2 mass rollout, the short answer is "as early as pos- sible", but she says the programme "is now fully geared up to cut across from SMETS1 to SMETS2 installations… and based on current time scales, we will commence a pilot this year followed by installs at scale in early 2018". Not willing to be too far led on how many are actually out there, she says simply: "We are currently in a test and trial phase and have suc- cessfully installed a small number as part of a very gradual and carefully controlled exercise." As part of this test and trial phase, British Gas will be reviewing the customer experience before it rolls out at scale, but at the time of going to press the company was unwilling to share any customer reactions to date.

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