Labour backs networks to take over smart meter rollout

Labour is pushing for distribution network operators (DNOs) to take over responsibility for installing smart meter across the country.

The opposition party warned that leaving suppliers to continue with the rollout risks a “creeping long-term disaster”.

As part of the ongoing scrutiny of the Energy Bill, shadow energy minister Alan Whitehead tabled an amendment to the legislation obliging the government to produce an urgent plan setting out options to ensure smart meters have been installed in 70% of all premises across the UK by 2025.

Labour said that an accelerated rollout could be achieved by transferring responsibility for the smart meter rollout from suppliers to the DNOs.

Other options would include making smart meter installations obligatory and setting time limits for phasing out traditional devices.

Whitehead said: “That would put an end to the current system, in which literally four or five installers could go up the same street on the same day to try to install smart meters on different premises, depending on what retail company the person was with. There would instead be one body that would be installing smart meters in the various regions and doing so in a much more systematic way.”

As the bulk of smart meters are not owned by the suppliers themselves but by third party organisations, it would be “relatively easy” to switch contracting agent for installations.

He described smart meter installation rates of as low as “30-odd per cent” in some parts of the country as “nothing short of a creeping long-term disaster as far as the UK energy economy is concerned”.

And he slammed the government’s bid to extend its existing smart meter rollout powers for another five years as flogging a “dead horse”.

Responding on behalf of the government, energy minister Andrew Bowie said that handing over responsibility for smart meter installations to DNOs would “slow down” progress on the rollout.

He also warned that setting a mandatory cut-off date for traditional meters would mean energy suppliers having to obtain forced powers of entry to tackle those who refused to install a smart device.

The debate took place prior to the publication of today’s National Audit Office assessment which has said that while the rollout of smart meters has improved over the last five years, it is still too slow.

Recent analysis by Utility Week found that the rate of smart meter installations must more than double to have any chance of completing the rollout by the 2025 deadline.

Energy thinktank Regen recently published a report which concluded that a network-led installation programme of smart meters could work in addition to, rather than instead of, the ongoing supplier-led rollout.