Projections by LCP Delta show that, while GB has made progress in the installation of electricity smart meters in domestic properties, it is still far from 100% uptake.
Government figures show that there have been 18.8 cumulative installations of smart meters so far in GB which indicates about 36% of homes are still without one.
European market comparison
GB is ahead of some European counterparts and compares well in terms of customer engagement but the overall rollout in Europe has had more success.
Countries that have completed their smart meter rollouts, or are moving at pace, such as Spain, Italy and France have rollout programmes that have been mandated. Indeed, European markets have largely taken a mandated approach, where GB’s effort has been retailer-led.
Customer engagement has a heightened importance in GB, and analysis showed that energy customer engagement levels vary across markets, affected by the approach to smart meter rollout programmes.
Germany falls behind the rest of Europe because of the delayed rollout in the country, with mandates for businesses and larger homes now in place.
Barriers to the UK rollout
The customer opt-in approach has helped the UK increase uptake, but the increasing resources necessary to encourage hard-to-engage customers is a major barrier. So too is the low number of installers.
LCP Delta’s analysis suggests that failure to address these issues would mean national targets missed and a reduction in the smart grid benefits available from full rollout. The challenges must be fully understood by policymakers in order for them to develop effective strategies.
LCP Data suggests several ways the nation can combat barriers to the rollout.
The government-backed campaign organisation, Smart Energy GB, must raise awareness, using targeted communications to outline the value add and the benefits of smart meters to reach hard to engage customers to drive uptake.
The government itself needs to hold suppliers to account and show commitment to the smart meter rollout to make metering companies confident to invest in the UK market.
Energy retailers should make smart meter enabled propositions attractive for consumers, giving them more control and lowering their energy bills.
Finally, energy regulators must address data privacy concerns and assure consumers that the UK has a robust smart meter infrastructure in place that provides a high level of resilience and protection.
David Trevithick, head of digital at LCP Delta, commented: “Our analysis indicates that we need both a full smart meter roll-out as well as engaged customers. They are not mutually exclusive.
“The challenge for policymakers is to engage the remaining customer base to achieve a full roll-out more quickly than a natural meter replacement cycle. To effectively navigate this landscape, it’s crucial to thoroughly assess how GB is currently performing and use it as a basis for forecasting future progress.”
BEAMA, the trade association for energy infrastructure and systems, has campaigned for greater consumer engagement, arguing it is essential to inform investment that accelerates electrification and support decarbonisation efforts.
Yselkla Farmer, CEO of BEAMA, said: “industry needs to resolve the limited number of issues with full function meters to ensure customers’ have a positive experience and build back public trust. Failure jeopardises the UK’s transition to low-carbon heat and transport which relies on this infrastructure, and network operators lack crucial data to upgrade distribution systems effectively.
“Despite falling behind schedule, the UK has made significant strides, with substantial investments creating a sophisticated infrastructure, unique manufacturing capabilities, and a supply chain poised for delivery.”
