Utility Week

12 | 8TH - 14TH DECEMBER 2017 | UTILITY WEEK Policy & Regulation Analysis I t's now eight years since the smart meter rollout was first announced, and the cut- off date for the deployment of first gen- eration (SMETS1) meters approaches (June 2018). There are millions of SMETS1 meters in the field and more are being deployed every day, as suppliers work to keep up with the rollout targets. Meanwhile, the final test- ing of second generation (SMETS2) meters grinds on. For those customers who have had a smart meter installed, the future looks bright. A third of respondents to a survey carried out for Utility Week by Harris Interactive said they had seen savings on their energy bills, and almost two-thirds (59 per cent) said they had better visibility of their energy costs. But the high penetration of SMETS1 meters, cou- pled with persistent challenges in bringing SMETS2 meters to market, is problematic. This is for several reasons, including the fact that many customers remain stubbornly unenthusiastic about the idea of adopting the technology. In a survey of just over 1,000 GB adults, Utility Week found that 25 per cent of respondents said they were not interested in getting a smart meter. Meanwhile, 24 per cent said they needed to find out more before making the decision to get one installed, and a further 5 per cent said they were wor- ried about the decision to get one – meaning cumulatively over 50 per cent may choose not to get a smart meter. Add to this the sub-optimal experience that a big chunk of SMETS1 smart meter cus- tomers are experiencing when they attempt to switch supplier – around 65 per cent of consumers who have tried to switch supplier post-smart meter installation have lost smart functionality, according to Utility Week's research – and you've got yourself quite the conundrum. None of this is slipping under the radar either. The national press is having a field day with negative smart meter stories – and it's doing nothing for consumer confidence. For the industry itself – whose inconven- iences tend to glean slightly less national sympathy – there's the lingering concern of DCC enrolment challenges down the line for SMETS1, and a continued need to support the higher technology and installation costs of SMETS1 meters while the SMETS2 niggles are worked out. The need to keep meeting targets also poses a growing risk of stranded SMETS1 assets. In response to the latter issue, the Depart- ment for Business, Energy and Industrial Strategy recently launched a consultation to get industry feedback on ways in which it could soen the SMETS2 transition deadline. It has suggested possible dero- gation arrangement for suppliers rolling out SMETS1 at scale, in order to avoid sup- ply chain inefficiencies and, crucially, any stalling 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. Silver lining But it's not all bad news. The proportion of respondents to the survey who said they needed to find out more information is a decrease on the 29 per cent who said the same when Utility Week conducted a similar survey six months ago. Market observers say this is attributable to the smart meter cam- paign run by Smart Energy GB. Ernst & Young advisory partner Rob Doepel describes the outcomes of the sur- vey as "unsurprising at this stage in the rollout". "Smart Energy GB is doing a great job. It's no mean feat targeting not just one segment of society but the entire population, and the results show there is now a fantastic increased national awareness," he tells Utility Week. Mark Brenton, energy specialist at Har- ris Interactive, agrees, but says the results highlight the challenges suppliers face in persuading "late adopters" to install a smart meter. "They need to see real evidence that having one can help save them money on their energy bills," he said. "The research shows that still only a third of those who now have a smart meter state that this is the case." Wanting to answer the same questions, Smart Energy GB commissioned its own, comparable survey in August, and said of those surveyed (almost 10,000 people), most who had gone through the installation pro- cess were "very satisfied with their smart meters, with around three-quarters (76 per cent) saying they would recommend one to others", according to a spokesperson. "And as the pool of people with smart meters grows, the number of people who would rec- ommend the new technology does too – now more than 4.5 million people." In the Utility Week-Harris Interactive sur- veys, the incidence of multiple visits to install meters fell from 13 per cent six months ago to 9 per cent this time around. However, the number of people surveyed who said they had seen "no benefit" from having a smart Smart meter doubters Smart meter installation targets loom large, but have consumers read the memo? Exclusive Utility Week-Harris Interactive research reveals a lot of uncertainty, says Alice Cooke. Where are we at? The government and Ofgem have a target to roll out 53 million gas and electricity meters to all homes and small businesses in Great Britain by the end of 2020. In its latest quarterly update in November, the government said there are more than 8.61 million smart and advanced meters installed. But it is SMETS2, or SMETS2- compatible SMETS1 meters, that households need. SMETS2 meters offer functionality that is critical to the success of the smart meter rollout and the delivery of its value case for both customers and the energy industry. This is because core SMETS2 functionality includes providing "first gasp" and "last breath" notifications to network operators of outages and supply restoration. It also includes transparent billing for customers, and seamless switching between suppliers. This ability to switch with ease is the big promise of smart metering. Despite the many other advantages, this promise is the least the scheme must deliver if it wants to instil confidence. Unfortunately, at present this is far from a reality – despite the advanced stage of the rollout, with its looming 2020 deadline for completion.

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