The smart meter rollout is a job for DNOs

In 2010, the Department of Energy and Climate Change handed responsibility for the rollout of smart meters to energy suppliers. They had the relationship with the customer, reasoned ministers, and were best placed to communicate, educate and use the opportunity to change public attitudes and behaviour. Moreover, and perhaps more importantly, they were subject to market pressures, unlike the monopoly distribution network operators (DNOs), and would thus be forced to keep costs down.

It was flawed logic and just how flawed became apparent this week. Suppliers may have a relationship with their customers – but it’s a terrible relationship, and getting worse by the day. Smart metering will be tainted by this association. Moreover, suppliers don’t have the geographical footprint to stage an orderly rollout, and their involvement creates difficulties around who owns the meter, what happens when people switch, and how information is shared and faults resolved between supplier and DNO.

In light of this shambles, Decc had little choice but to accede to suppliers’ wishes and delay the rollout for a year.

Is it time to think again? Delaying the programme for a year is expedient, but it merely papers over the cracks without addressing the unstable foundation. If ministers are committed to a successful smart metering programme, they need to look again at who manages the rollout and how.

True, it’s a bit late in the race to change horses – but the finish line has just moved back by a year. And conveniently, the new start date is 2015 – after the next general election. If today’s political masters are reluctant to reverse their own decision, it will be much easier for a new administration to tear up the programme before it even begins.

Ellen Bennett

This article first appeared in Utility Week’s print edition of 17th May 2013.

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