Large energy suppliers will have to triple the current rate of smart meter installation if they hope to hit their target of replacing all existing meters by 2020, according to new analysis from Which?
The consumer organisation found large suppliers would need to work around the clock, installing 30 smart meters per minute, every day, for the next two years, to fully replace the 46 million existing meters their customers have and meet their targets as part of the £11 billion roll-out.
So far, large suppliers have installed more than 11 million smart meters which is just a quarter (25%) of the existing meters that could potentially be replaced.
With just over two years to go until the 2020 deadline, Which? is concerned that delays and subsequent increased costs will result in reduced savings for consumers. Government estimates for the expected savings for an annual dual fuel bill in 2020 have already fallen from £26 to just £11.
In February Which? found large energy companies would need to install 24 smart meters per minute to meet the deadline. But rather than speeding up the rollout, recent analysis by the consumer champion reveals a slowdown in smart meter installations.
Up to 53 million smart meters, designed to replace traditional gas and electricity meters across homes and businesses, are due to be installed across Britain by the end of 2020. Large energy suppliers are responsible for rolling out smart meters to 46 million of them.
Energy suppliers maintain that they will meet the 2020 target, but as the deadline draws closer, Which? believes this is looking increasingly unlikely and more must be done so that consumers are offered the opportunity to benefit from upgrading to a smart meter.
The roll-out has been plagued with problems from the outset, including faulty in-house display monitors and meters that were no longer compatible when customers switched energy suppliers.
Smart meters are expected to save consumers money and produce economic benefits of around £16.7 billion. However a previous National Audit Office report stated that these estimated benefits are based on the assumption that smart meters are rolled out to virtually all consumers by the end of 2020.
Dubbed as the “next generation of gas and electricity meters,” smart meters provide customers with an accurate reading of their energy usage and automatically send this information to suppliers – potentially meaning an end to meter readings and estimated bills.