GDNs could threaten success of smart meter rollout, says EDF

Big six energy supplier EDF has said the lack of information provided by gas distribution networks (GDNs) on their preparations “could pose a threat to the success of smart meter rollout”.

In a submission to a recent Ofgem consultation, EDF said there is “very limited visibility and transparency on how GDNs are spending their allowance preparing for smart metering rollout”.

The supplier said although it receives “some updates” from the distribution network operators for electricity, it does not receive any information on the current performance and planning arrangements by GDNs,

EDF said the issue warranted “further examination” in a mid-point review (MPR) during the current eight-year price control period, adding: “The involvement of GDNs in the smart meter rollout has become much clearer since RIIO-GD1 was agreed and we believe it would be timely to revisit this in the MPR.”

A spokesperson for the Energy Networks Association said: “GDNs engage frequently with the Department for Energy and Climate Change (Decc) smart meter programme to demonstrate their preparations and these reviews are consistently given ‘green’ status for readiness.

“Decc [has] full visibility of network preparations and [is] comfortable that there are no significant risks to the programme from this aspect of the roll out.”

EDF said it supports Ofgem’s findings that an MPR is needed to address some issues in gas and electricity transmission. Ofgem said it has not identified any material issues that would warrant an MPR for gas distribution.

British Gas and Citizens Advice have called for an MPR across the board for networks to identify if the current price control still represents value for money for consumers and to address systemic “outperformance” by network companies against their required outputs.

However in contrast networks have said the issues Ofgem identified for transmission would be better addressed through other mechanisms.