The Government considered the potential for delivering smart meter rollout and national home efficiency programmes together in the course of developing the smart meter Consumer Engagement Strategy in 2012:

https://www.gov.uk/government/consultations/smart-meter-consumer-engagement-strategy

The Government recognised that the smart meter installation process provides an opportunity to support other home energy efficiency programmes and it asked suppliers to consider how they can bring together obligations to deliver initiatives such as the Affordable Warmth element of the Energy Company Obligation (ECO) with the smart meter roll-out. In addition, energy suppliers are required to comply with an Installation Code of Practice that requires installers to demonstrate the smart metering system, offer energy efficiency advice, and inform the consumer how they can obtain additional and impartial information or assistance in improving energy efficiency. This includes, for example, generic information about programmes such as the Green Deal and ECO.

The Department does not hold information on the number of pre-payment meter customers who self-disconnected.

The Smart Metering technical and security architecture is based on a suite of agreed, open standards, reflecting the Government’s strategy to facilitate the development of third party innovative solutions for consumer devices. Consumer consumption data is stored securely on the meter, rather than in any central database. Consumers can give consent to authorised third parties to access this data via the Data and Communications Company, or they can securely connect devices through their Home Area Network to access the data locally.

The smart meter roll-out is being led by energy suppliers, who operate in a competitive market. This is expected to deliver the roll-out in the most cost-effective way. Government is developing a reporting framework which will be used to monitor efficiency savings made during the roll-out.

Costs will not be charged upfront to consumers for either the installation visit or the smart meter. Industry costs, net of efficiency savings, will be recovered over the lifetime of the equipment via energy tariffs, as is the case now for traditional metering equipment. DECC has already committed to report on the costs and benefits of the roll out and is developing arrangements for this ahead of the main installation phase.

The Government does not object to industry parties co-ordinating their activities in accordance with the rules of competition law. It has developed a governance structure for the Smart Metering Programme that enables the Government, industry and other parties to share information and discuss a range of potential improvements to the efficiency of industry-wide processes and practices. This includes the establishment of groups dedicated to technical and business processes and industry-wide installation and safety issues.

‘All reasonable steps’ is a standard regulatory phrase that is widely used in energy suppliers’ licences. It means what it says. It places the onus on suppliers to show that they have made genuine good faith efforts with all their customers, while allowing them important flexibility where they have taken all reasonable steps.

The Government and Ofgem want suppliers to focus on developing solutions where installations may be technically challenging, and building support for smart metering among their customers.

The smart meters programme is designed within the legal framework for the GB energy market. This is based on energy companies competing against each other to supply energy to consumers.

The Government is requiring all energy suppliers through their licence conditions to deliver smart metering. The energy companies have strong commercial incentives to do this as efficiently as possible, all along their supply chain.

Ofgem is responsible for regulating the energy market and is able to intervene where suppliers do not meet their licence conditions. In addition, the Data and Communications Company is regulated by Ofgem to ensure that its services are provided in an economic and efficient manner.

The Government is monitoring progress by all parties on whom the smart metering roll-out depends, to ensure benefits to consumers are delivered.

There is a strong business case for rolling out smart meters. The total cost of this national infrastructure programme needs to be looked at in the context of its overall net benefits, expected to be around £6 billion.

There was general agreement at the workshop that payment differentials was a complex issue and that any changes to the rules would create winners or losers with no clear benefit to vulnerable groups. For example, of households who were fuel poor in England in 2012, around 48% paid for their electricity and 40% paid for their gas through direct debit and around 27% paid for their electricity and 20% paid for their gas through prepayment meters. Changing rules in favour of pre-payment meter customers would make direct debit customers worse-off.

Ofgem intend to circulate a note from the event to participants within the next week. As part of their ongoing work programme on vulnerability, they are planning a series of workshops to focus on other important issues in the future.

The Smart Metering Programme in Great Britain was launched in December 2009, with the intention of completing the roll out of smart meters to all homes by 2020. The roll-out has started. At the end of June 2014 around 900,000 meters were in operation under the Programme.

The completion dates of the roll-out of smart meters have been changed as follows:

a) In March 2011, the Government stated in the Ofgem/ DECC Response to the Prospectus Consultation that suppliers would be required to complete the roll-out of smart meters in 2019 and confirmed in April 2012 that the roll-out should be completed by 31 December 2019, rather than 2020.

b) In May 2013, following a review of the Smart Metering Programme, the Government announced that it had decided to move the completion date for the mass roll-out from end 2019 to end 2020.