Page 8 - Gi flipbook April 2018

NEWS | GOVERNMENT

Smart meter roll-out

‘will cost extra £9bn’

THE COST OF INSTALLING “Based on current
smart meters in homes estimates, there is no
across Britain is set to way that the benefits will
come in at almost double outweigh the costs of
the original estimate, installing smart meters in
putting an extra £9 billion people’s homes,” confirmed
on household energy bills an unnamed source at the
and wiping out all the Big Six.
supposed financial benefits Edward Molyneux, of
of the scheme. switching service Look After
Sources at the Big Six My Bills, says: “Sadly, it’s no
power giants told Money surprise that costs for the
Mail that the estimated smart meter programme
cost of rolling out the are spiralling out of control.
new digital meters has “The programme has
ballooned from £11 billion been bedevilled with delays
to nearer £20 billion. and issues. The government
The increase, which is needs to come clean on the
expected to be confirmed true cost of the programme
in an official report later and when it will actually be
this year, would wipe out implemented.
all the savings households “Households are footing
were promised from smart the cost through their bills, Costs for the scheme
meters. so they have a right to are reported to be
The latest government know what is going on.” ballooning
estimates suggest that This is the latest
households will save £16.7 controversy to hit the So far, around nine pass on these savings to
billion by having a smart national meter upgrade, million meters have been customers through lower
meter installed, as it will which has been beset by installed in homes and prices.
encourage them to reduce problems and delays. small businesses. It is expected that the roll-
their power usage and help The roll-out is behind Suppliers are footing out will reduce the average
providers keep bills low. schedule and energy the bill for the roll-out, household bill by £11 in
But this is well below giants have been accused but these costs are being 2020 and by £47 in 2030.
the latest projections for of flouting trading laws passed on to customers in The Department for
the costs, which energy by telling households the the form of higher bills. Business, Energy and
suppliers recoup from new meters are a legal The National Audit Office Industrial Strategy (BEIS),
household bills. That means requirement when they (NAO) spending watchdog which is leading the roll-out,
households will effectively are not. recently announced that it says: “We do not recognise
be left £3.3 billion out of Smart meters had launched an investigation these figures and energy
pocket by the scheme. automatically send readings into the cost of the smart suppliers have not shared
Money Mail also revealed to energy firms via a meter programme. this information with us.
that the energy price cap wireless signal, doing away In 2016, the government “Our latest analysis
unveiled by Theresa May with estimated bills. estimated that it would was based on inputs from
will be set high enough to They also show customers cost £11 billion, and provide energy suppliers on their
include these extra costs. how much energy they benefits worth £16.7 billion. costs and forecasts net
If the additional £9 billion are using in pounds and This included £5.24 billion benefits of £5.7 billion to
cost is passed on in full, it pence, in a bid to encourage of savings that households consumers.
would add an extra £300 households to reduce their could make by reducing “Smart meters are a
on to every bill by 2030. power consumption. their power usage and vital step towards a more
This would mean that, Energy companies have £8.25 billion of savings for flexible, cost-effective
altogether, households been ordered to offer every suppliers, as they will have energy system that works
would be paying £666 for household one of these fewer admin costs and no better for consumers, and
the smart meter scheme new meters by 2020 and longer have to send out will take £300 million off
rather than saving money face huge fines if they do meter readers. domestic energy bills in
as promised. not meet this target. It is hoped that they will 2020 alone.” ■

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News.indd 3 15/03/2018 14:23