Smart meters roll-out to miss 2020 target

Consumers face paying £500,000 more than expected for the rollout of smart meters and it is unlikely that they reach their 2020 target, the National Audit Office has warned.

The NAO said that with 39m traditional meters yet to be replaced all homes will not be offered one by 2020 as planned.

The £11bn investment in the infrastructure project will cover just for 70-75% of households and small businesses to have a smart meter by then predicted energy suppliers. Smart meters are considered a critical upgrade of the energy system that help consumers understand the energy they use.

Head of regulation at uSwitch.com, Richard Neudegg, said: “As many as 70% of the 12.5m smart meters installed so far will go ‘dumb’ if an energy customer switches supplier. That means there’s a risk that up to nine million may need to be ripped off the wall and replaced at considerable cost and inconvenience to households."

The NAO urged the government to consider a new deadline, with Amyas Morse, the head of the NAO, saying: “Costs are rising, and timescales slipping, but smart meters can still succeed over time.”

The government said that 400,000 meters were being installed every month, and the target was achievable.

"Millions have already chosen to have a smart meter and take control of their energy use to cut their bills," said energy minister Claire Perry.

"We've said everyone will be offered a smart meter by the end of 2020 to reap these benefits and we will meet that commitment."