The UK Smart Meter rollout programme missed its original completion date of 2019 and new arrangements were established for the rollout to get, as a minimum, a smart meter installed in 80% of UK homes by the end of December 2025. That number‘s still a long way short of the original 100% ambition, and it’s since been watered down to ~75%. The Government’s Smart Meter Statistics reports for Q3 2023 and Q3 2024 show the numbers stood at 59% and 65%, respectively. Not all installed meters are operating in ‘smart mode’ so, in reality, the numbers where smart mode is in operation are ~10% lower. However, regardless of how you look at the numbers, progress of 6% over a full year doesn’t provide any confidence that the end of 2025 minimum target will be met. Perhaps the next government report for Q4 2024 will paint a more positive picture? Unlikely.
The UK government and the enterprises delivering the programme are, no doubt, already discussing the consequences of falling short of 2025’s minimum target. Two things seem certain. Firstly, the rollout will continue for years beyond 2025, with some kind of reset dressed up by spin that covers some difficult realities. Secondly, the consumer will continue paying for the programme through their energy bills for a long time yet. Remember, the benefit to the consumer is miniscule compared to the benefit to the energy supply companies.
If the 6% rise in on-premises smart meters between Q3 2023 and Q3 2024 typifies rollout progress for the coming years, you don’t have to be a genius to see that achieving 100% this decade is questionable. The programme’s cost ~£13.5bn, has been running for >12 years, and there are millions of meters still not operating properly in homes. It’s supposedly a national infrastructure programme vital for modernising the UK energy system, improving energy security and resilience, and supporting net-zero greenhouse gas ambitions. Public scepticism, however, is unabated. Programmes of this ilk are, of course, always challenging, but many countries in Europe have already achieved or surpassed 80% penetration with their own smart meter rollouts and so something fundamental must explain why the UK’s programme consistently underperforms.
Smart meter obsolescence will require the replacement of many meters installed in homes in the coming years, and a communication upgrade is necessary to deal with the demise of 2G/3G communication networks. There doesn’t appear to be a forecast cost to complete the meter installations needed to achieve 100% penetration and these upgrade issues in the public domain yet. The Badger thus concludes that consumers will be footing the bill for years yet, and that it’s right to be sceptical about the ability to deliver any new national energy programmes to time, budget, quality, and tangible consumer benefit…
