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Larger energy suppliers need to triple their current rate of smart meter installation to hit a target of replacing all existing meters by 2020, according to research from Which?
The consumer association said larger suppliers would need to install 30 smart meters a minute, every day, for the next two years, to fully replace the 46 million existing meters UK customers have and meet their targets as part of the £11 billion roll-out programme.
In total, 53 million smart meters are to be offered to customers across the country by the end of 2020. Large energy suppliers are responsible for 46 million of them.
The estimated financial benefits of smart meters are based on the assumption that the devices are rolled out to virtually all customers by the end of 2020.
According to Which?’s analysis, large suppliers are currently installing 9.7 meters per minute.
The company said it is concerned that delays and subsequent increased costs will result in reduced savings for consumers, adding government estimates for the expected savings for an annual dual fuel bill in 2020 have “already fallen from £26 to just £11”.
It added that so far, large suppliers have installed more than 11 million smart meters, however this is just a quarter (25 per cent) of the 46 million existing meters that could potentially be replaced.
In February Which? found large energy companies would need to install 24 smart meters per minute to meet the deadline. But recent analysis from the company reveals a slowdown in smart meter installations.
Alex Neill, Which? managing director of home products and services, said: “The smart meter rollout has been plagued by problems and been massively delayed, the benefits have been overstated and the savings they could bring consumers are at risk.
“Therefore it’s time for the Government to replan with industry and consumer groups to ensure people get the maximum benefit at the minimum cost.”
Under the Government’s smart meter roll-out programme, suppliers are required by law to take all reasonable steps to roll-out smart meters to all homes and small businesses by the end of 2020.
To work towards this, suppliers set individual annual targets for smart meters to be installed for their customers, against which Ofgem monitors compliance.
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