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Energy retailers have an additional six months under the current smart meter rollout obligations before the new framework will be implemented, the government has announced.
A document released by the Department for Business, Energy and Industrial Strategy (BEIS) revealed the government has taken the decision to extend the current ‘all reasonable steps’ obligation by six months from 1 July due to the impact of the pandemic.
Following this period the new four-year framework will begin on 1 January 2022 and will set energy suppliers annual, individual installation targets on a trajectory to 100 per cent coverage. This will be subject to an annual tolerance level which creates a minimum number of installations each supplier must meet in each year.
BEIS said the latest installation data indicates that more than 90,000 second-generation (SMETS2) smart meters are being installed weekly which is close to the pace expected under the new framework.
It added that the six-month extension provides retailers with further time to complete their planning and implementation ahead of the new obligations.
The latest smart meter rollout framework was first unveiled in 2019 and was due to begin in January this year. However, due to pressures placed on suppliers by the pandemic, the original deadline was extended to July meaning this latest decision will see the original target date extended by a full year.
Elsewhere the government has outlined the distinct tolerance levels for years one and two of the new framework. A later consultation will determine the tolerance levels for years three and four.
The document also confirmed an alignment with Ofgem’s reporting thresholds, meaning energy suppliers with 150,000 or more gas and/or electricity customer accounts will now be subject to reporting requirements.
In addition, a consultation will be published later this year regarding a modification to mitigate the impact of churn in smart meter customers.
According to the latest figures, at the end of March 2021 there were 24.2 million smart and advanced meters in homes and small businesses across Great Britain, representing 44 per cent smart coverage.
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