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Smart meter rollout delay 'could cost consumers a whopping £13.4 BILLION over the next four years'
17 September 2019, 17:22 | Updated: 17 September 2019, 17:41
Energy companies have been under a legal obligation to kit out all British homes and small businesses with smart meters since 2012.
The rollout of energy smart meters has been delayed by four years and will cost a total of £13.5billion, the government has revealed.
Ministers published an update earlier this week outlining brand new deadlines and budgets for the huge energy project, but also admitted consumers are expected to foot the growing bill that comes along with it.
It was announced that it could now take until 2024 to fit all UK households with smart meters – a job that is costing a whole lot more than expected.
The UK had initially set the completion deadline for 2020, but new projections have detailed a huge £2billion increase in cost, not to mention faulty devices, digital hurdles and supplier issues.
Energy companies have been under a legal obligation to kit out all British homes and small businesses with smart meters since 2012.
The digital devices, which show people real-time information about how much electricity and gas they are using, are being installed to scrap estimated bills and make homeowners more accountable for the energy they are using.
In the report published yesterday, the government said: “The smart meter programme remains on track to offer smart meters to every home and small business by the end of 2020”.
But it highlighted that fact it was now having to consider “what may be needed to support a marketwide roll-out of smart meters”.
Just two million out of the 15million properties with the smart meters have models that automatically allow customers to switch energy supplier, leaving industry experts dubious of the project's success.
Gillian Guy, chief executive of Citizens Advice, said: “Extending the smart meter rollout deadline is a common-sense move that is good news for consumers. It’s been clear for a long time that the 2020 deadline wouldn’t be met and today’s announcement finally recognises that reality.
"We’ve seen some energy companies use aggressive techniques to try to persuade people to have smart meters fitted as soon as possible to meet the existing timeline.
"We are pleased the Government is extending the deadline.
"It’s also apparent the cost of the rollout is escalating, and the public are picking up the tab through their energy bills.
"People will still benefit in the long run, but today’s cost-benefit analysis shows focusing on speed hasn’t worked."
However climate change minister Lord Duncan wholeheartedly believes in the digital switch and says it's already cheaper and more environmentally friendly than traditional methods.
He said: "Replacing traditional gas and electricity meters is a vital upgrade to our national energy infrastructure.
"We remain on track for suppliers to offer every home a smart meter by the end of next year, but to maintain momentum beyond 2020 we are proposing strict yearly installation targets.
"This will deliver even greater benefits for households and reduce emissions – helping the UK to meet its net zero 2050 target."
