News story

Key milestone for smart meters rollout

Plans for the installation of smart meters for millions of homes and businesses in Great Britain took a step forward today with the publication…

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Plans for the installation of smart meters for millions of homes and businesses in Great Britain took a step forward today with the publication of Government decisions on rules for consumer engagement, privacy, and security.

Energy and Climate Change Minister Baroness Verma said:

“The introduction of smart meters nationwide is of course an enormous challenge, representing a vast upgrade of our energy system, but with huge potential benefits for millions of homes and businesses and for Great Britain as a whole.

“Let me be clear: the consumer comes first. That’s why we are tackling issues such as privacy, security, consumer protection and communications now, working with industry and consumer groups to make sure we get this right ahead of the mass rollout.

“Today marks an exciting step forward in delivering the smart meter programme, as we finalise the work needed to achieve the benefits we believe consumers should receive.”

The Government’s vision is for every home in Great Britain to have smart energy meters, with business and public sector users also having smart or advanced energy metering suited to their needs. The roll out of smart meters will play an important role in Britain’s transition to a low-carbon economy and help us meet some of the long-term challenges we face in ensuring an affordable, secure and sustainable energy supply.

Consumers will have near real time information on their energy consumption to help them control their energy use, and avoid wasting energy and money. Smart meters will also provide consumers with more accurate information and bring an end to estimated billing, helping them to budget better.

Energy suppliers will be responsible for replacing over 53 million gas and electricity meters, involving visits to 30 million homes and small businesses. The mass roll-out of smart meters will start in late 2014 and to be completed in 2019. The majority of consumers will receive their smart meters during the mass roll-out.

Key conclusions set out today include:

  • consumers will have choice on how often their energy supplier can access their energy consumption data;
  • suppliers will not be able to use energy consumption data for marketing purposes unless they have explicit consent;
  • suppliers will be required to give their customers reminders about the choices they have made and how they can change their minds;
  • the Government will request annual reports from all larger energy suppliers setting out their plans and progress with the roll-out; and
  • a new Central Delivery Body will help consumers to use smart metering to better manage their energy consumption and expenditure.

The proposals set out in these series of publications will make sure that consumers and suppliers can use the energy data provided by smart meters in the best way possible, at the same time as making sure consumer rights are protected.

Notes for Editors

  1. You can find out more about DECC’s Smart Meters Programme on the Smart Meters: frequently asked questions webpage.
  2. Key documents published today include:

This sets out the Government’s conclusions on what constitutes effective engagement and provides details of how domestic and non-domestic consumers will be engaged through a programme of centralised consumer engagement. The response centres on obligations to establish a Central Delivery Body which will provide reassurance on areas of consumer concern and help consumers use smart metering to better manage their energy consumption and expenditure.

This consultation response defines the final licence conditions for supplier access to domestic consumers’ energy consumption data, and gives consumers control about how their data is used.

Alongside the development of the smart metering data access and privacy framework, the Government has developed a Privacy Impact Assessment. The aim is to ensure that any perceived privacy impacts have been identified and arrangements are in place to manage them.

This consumer research examines the extent to which the Government’s proposals for a data access and privacy framework addressed potential concerns that consumers may have.

The Energy Efficiency Directive requires that domestic consumers with smart meters should be provided with easy access to at least 24 months of consumption data, where they have a smart meter. The consultation considers a range of options to deliver the Directive provision and sets out a preferred approach.

This consultation response sets out the framework under which DECC and Ofgem will request information from suppliers and networks on plans, progress and impacts of smart meter roll-out.

This consultation response sets out the obligation on energy suppliers to operate secure smart metering systems during the period before the Data and Communications Company (DCC) goes live.

Published 12 December 2012