Smart meter policy framework post 2020: minimum annual targets and reporting thresholds for energy suppliers
Applies to England, Scotland and Wales
Download the full outcome
Detail of outcome
The government response confirms the following decisions:
- the extension of the current All Reasonable Steps obligation for 6 months to 31 December 2021, with the new Framework commencing on the 1 January 2022
- distinct tolerance levels for domestic and non-domestic energy suppliers
- final tolerance levels for Years 1 and 2 of the rollout now, to start from 1 January 2022 (for domestic and non-domestic rollouts)
- a review point during Year 2 (2023) of the Framework, followed by a further consultation. This consultation will focus on setting the appropriate tolerance levels for Year 3 (2024) and Year 4 (2025) of the Framework
- the alignment with Ofgem reporting thresholds for large energy suppliers. Energy suppliers with 150,000 or more gas and/or electricity customer accounts will now be subject to reporting requirements under the new Framework
- a forthcoming consultation (during 2021) on a modification in the calculation of Year 2 targets (2023) to mitigate the impact of churn in smart meter customers
Detail of feedback received
We received a total of 21 responses to this consultation from a wide range of stakeholders:
- energy suppliers
- trade bodies
- consumer groups
- supply chain operators
- delivery partners
Most of the responses were from energy suppliers who provided feedback about the policy proposals and the modelling approach.
Original consultation
Consultation description
In June 2020 the government confirmed a new 4-year smart metering policy framework to start on 1 July 2021, following a 2019 consultation. This framework was designed to drive the consistent, long-term investment needed to achieve high levels of smart meter coverage by setting annual targets and providing regulatory certainty.
The consultation proposes to set each energy supplier an individual target on a trajectory to 100% coverage, subject to annual tolerance levels that apply across industry as a percentage of their customer base. This would create a minimum installation quantity that an energy supplier must achieve in each year of the new framework.
The consultation also asks for views on reducing the reporting threshold for large energy suppliers.
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Last updated 1 June 2021 + show all updates
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Government response added.
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Consultation closing date extended to 12 midday, Friday 15 January 2021.
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First published.