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Energy Bill

moved Amendment No. 26: 26: After Clause 83, insert the following new Clause— ““Smart meters: installation (1) The Secretary of State shall make regulations requiring the installation of smart meters for the supply of gas and electricity in all domestic hereditaments subject to the following provisions— (a) that within 18 months of the coming into force of this Act, the Secretary of State shall lay before Parliament a timetable for the introduction of smart meters; (b) that within 18 months of the coming into force of this Act, the Secretary of State shall lay before Parliament a draft of the proposals for regulations for the introduction of smart meters. (2) In this section, a ““smart meter”” means a gas or electricity meter with two way communication capabilities including a communication capability to display— (a) household usage on a daily basis; (b) total cost within a billing period of units concerned; and (c) the cost per unit.”” The noble Lord said: My Lords, the debate on Amendment No. 26 will be much briefer than that on the previous amendment because most of it has taken place. Essentially, this is a rehash of the transparency amendment moved in Committee. It seeks to test the resolve of the Government to bring in smart meters at the earliest opportunity. It follows on from the speech of Malcolm Wicks, the then Minister, who, on 30 April in Committee in the Commons, at col. 333 of Hansard, set out the Government’s compromise on smart meters with their own amendment. It is obvious that the Government are hesitant about giving undertakings on domestic smart meters. I accept that the prospect of undertaking the replacement of 47 million electricity and gas meters is daunting, as is the potential cost involved if we accept the estimate of £8 billion to £14 billion over 20 years. I suspect that in the end it will cost far less than that. My amendment requires only a minor shift in the Government’s position. In Committee, I said that I had consulted widely with Members of the Committee in the other place on what was deemed a feasible timetable. There seemed to be universal support for 18 months. I can only repeat the Prime Minister’s statement in November 2007. He said: "““For every household over the next decade there will be the offer of a smart meter that will allow two-way communication between the supplier and customer, giving more accurate bills of course and making it easier for people to generate their own energy through micro generation and sell it on to the grid””." The Energy Retail Association’s advice is: "““If the ambition to have all homes in Britain fitted with smart meters is to be achieved, the process of planning needs to begin sooner rather than later. In order to achieve the Government’s stated expectation that smart meters will be rolled out to every British home within 10 years, the industry needs a mandate. It must commit now to a clear timetable””." In Committee, my noble friend said that there may be some movement by the end of this year on a timetable. He did not guarantee it, but it was clear that the amendment I moved then was pretty close to the Government’s general thinking on the need for an early decision. My noble friend will recall that in Committee I asked for some work to be carried out in the recess on the costs of smart meters in Italy and Australia, the sources of manufacture and the potential for manufacture in the United Kingdom. Some of that work has been done, and in August we received a letter setting out the nature of the Government’s initial position on these matters. A further letter was sent in September, but I have not seen it yet. However, I and other noble Lords still await a comprehensive report on the position internationally, particularly on the sources and cost of manufacture of smart meters. I hope that the Minister has something hopeful to report today. I beg to move.