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Fuel poverty advisor calls for smart meter data to be used to identify vulnerable

The government’s advisor on fuel poverty has backed the use of smart meter data to identify vulnerable customers.

The Committee on Fuel Poverty (CFP) believes smart meter data can be used to tackle self-disconnections; provide targeted support to the fuel poor; and increase the uptake of energy efficiency schemes among those who could benefit the most.

The CFP makes the assertions in its response to Citizens Advice’s Consumer Workplan for 2024-25, in which the consumer body calls for input in maximising the smart meter rollout.

It adds that “the rollout of smart metering offers the potential to provide targeted support to the fuel poor”.

However, the CFP warns that “trust in energy suppliers’ wider use of smart metering needs to be built”.

Therefore, it suggests that the future system operator could take on a role in analysing smart meter data to identify fuel poor households.

It adds: “In addition to the broader consumer interest in the creation of a Future System Operator, the CFP believe there is potential to use smart metering to improve targeting support for the fuel poor.

“Currently around 60% of households have a smart meter, therefore we see greater coverage as an important component of future new arrangements.

“We agree that the rollout of smart metering offers the potential to provide targeted support to the fuel poor through their energy providers, or at an anonymised level through the system operator.”

In relation to self-disconnections, the CFP submission adds: “The CFP shares the concern about the support available to consumers who regularly disconnect. We welcome the proposal to work with Ofgem and energy suppliers to significantly reduce the number of consumers who are self-disconnecting for three hours or more.

“In theory we agree that moving from traditional pre-payment meters to smart meters should benefit consumers (e.g. by allowing bill support to be directly loaded onto accounts)”.

According to the latest government figures, at the end of September last year there were 33.9 million smart and advanced meters in Great Britain in homes and small businesses (59% of all meters).

Previously released figures from Electralink show that more than 2.4 million smart electricity meter installations were recorded in 2023, a fraction higher than the 2.37 million installs in 2022 and marginally lower than 2021 which saw 2.41 million installs.

The number of smart electricity meters installed in January this year was at its highest for that month in four years, the latest figures from Electralink reveal.

A total of 221,000 devices were installed during the first month of the year, up 30% on December 2023 and a 21% year-on-year increase.