The government will set suppliers new annual targets for the roll out of smart meters to ensure the scheme does not come to a halt.
The smart meter rollout programme initially aimed to install smart meters in every home and the majority of businesses by 2020, a total of 53 million installed meters.
However, the rollout programme was not mandatory for customers and suppliers were only required to offer a smart meter to all their customers and take all reasonable steps to do so.
Just 21.5 million meters had been installed by March 2020, with most suppliers struggling to install smart meters in homes. The installation rate was also hampered by setbacks in the launch of the Smets 2 meter.
Of this number of installed smart meters, only 4.3 million are reported to be fully functional, second generation Smets meters.
Some experts warned the government that the 2020 deadline was unrealistic and would result in higher costs for the consumer and lack obvious benefits.
Last September, the government agreed that the deadline was unviable and extended the deadline to 2024.
A new plan will see suppliers given annual targets, with potential penalties for those who fail to deliver 85% coverage – these targets are expected to come into operation by mid-2021.
Secondary legislation will be released in Autumn this year to enable the changes and launch a consultation. Targets would then be reviewed in 2022 to address any problems or supplier concerns.
Smart meters are seen as a key component by the government in terms of delivering a low-carbon, smart grid which can adjust with demand and improve efficiency.
To find out more about smart meters, speak with one of our energy consultants today by calling us on 01257 239500, or by using our contact page.