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Smart meters to cut energy bills by just £11, say MPs Smart meters to cut energy bills by just £11, say MPs
(about 11 hours later)
Customers who get smart meters installed are expected to save just £11 a year off their energy bills, a group of MPs has found. People who get smart meters installed are expected to save an average of £11 annually on their energy bills, much less than originally hoped.
It was originally thought that the new meters would save consumers at least £26. A report from a parliamentary group now predicts a dual fuel saving of £26.
In one of the most critical reports yet on the £11bn programme, the MPs also said the government was now likely to miss its own deadline. In a critical report, the 92 MPs and peers also said the government was likely to miss its own deadline to have the £11bn switchover completed.
As many as 53 million of them are due to be installed by the end of 2020. As many as 53m smart meters were planned to be installed in 30m homes and businesses by the end of 2020.
Grant Shapps, the chair of the British Infrastructure Group of Parliamentarians (BIG), said the programme had been "plagued by repeated delays and cost increases, with suppliers now almost certain to miss the 2020 deadline, and programme benefits likely to be slashed even further."Grant Shapps, the chair of the British Infrastructure Group of Parliamentarians (BIG), said the programme had been "plagued by repeated delays and cost increases, with suppliers now almost certain to miss the 2020 deadline, and programme benefits likely to be slashed even further."
The government said smart meters were putting consumers in control of their energy use, and were already benefiting millions of homes and small businesses across Great Britain. Speaking on BBC Radio 4's Today programme, Mr Shapps said one of the reasons for the "mess" was that "first generation" smart meters, which do not always work when a customer switches supplier, will continue to be rolled out until next year.
He added: "We need to shift to a reliable timetable, we need to quit installing obsolete old meters... and we need to have the regulator become a lot tougher."
The government said smart meters were putting consumers in control of their energy use, and were already benefiting millions of homes and small businesses across Britain.
Smart Energy GB, which is promoting the roll out of the smart meters, said: "All smart meters mean an end to estimated billing and give people a greater understanding of their energy use.Smart Energy GB, which is promoting the roll out of the smart meters, said: "All smart meters mean an end to estimated billing and give people a greater understanding of their energy use.
"Smart meters are also making prepay cheaper and more convenient, bringing the way we pay for our energy up-to-date, enabling customers to top up online or over the phone.""Smart meters are also making prepay cheaper and more convenient, bringing the way we pay for our energy up-to-date, enabling customers to top up online or over the phone."
Customers have financed the smart meter programme by paying a levy on their energy bills, while suppliers have frequently blamed the levy for rising costs.Customers have financed the smart meter programme by paying a levy on their energy bills, while suppliers have frequently blamed the levy for rising costs.
However the report claimed most of the eventual savings would be made by energy firms, rather than consumers. However, the report claimed most of the eventual savings would be made by energy firms, rather than consumers.
"The roll-out is consequently at serious risk of becoming yet another large scale public infrastructure project delivered well over time and budget, and which fails to provide energy customers with a meaningful return on their investment," said Mr Shapps."The roll-out is consequently at serious risk of becoming yet another large scale public infrastructure project delivered well over time and budget, and which fails to provide energy customers with a meaningful return on their investment," said Mr Shapps.
'Going dumb''Going dumb'
The MPs also said some suppliers had been engaging in "scare tactics" to convince customers to have a meter installed, in order for targets to be reached.The MPs also said some suppliers had been engaging in "scare tactics" to convince customers to have a meter installed, in order for targets to be reached.
Such tactics included firms telling customers that their bills would go up unless they agreed to have a meter, or that their old meter was dangerous.Such tactics included firms telling customers that their bills would go up unless they agreed to have a meter, or that their old meter was dangerous.
The report also said that:The report also said that:
The MPs said the government should now plan for the roll-out to be completed by 2022, and that supply of the new generation of smart meters should be sped up.The MPs said the government should now plan for the roll-out to be completed by 2022, and that supply of the new generation of smart meters should be sped up.
They also said customers should be automatically compensated for each day their meter malfunctions.They also said customers should be automatically compensated for each day their meter malfunctions.
Response 'Ongoing success'
The report was signed by 92 MPs.
However the government said it was wrong to call dumb meters "obsolete".However the government said it was wrong to call dumb meters "obsolete".
"It's simply wrong to say first-generation meters are 'obsolete' as they offer smart services now and will continue do so as they are enrolled into the smart metering network, " said a spokesperson for the Business and Energy Department."It's simply wrong to say first-generation meters are 'obsolete' as they offer smart services now and will continue do so as they are enrolled into the smart metering network, " said a spokesperson for the Business and Energy Department.
"However we welcome ideas on how to ensure the ongoing success of the smart meter roll out and are already working with Ofgem on issues raised in the report.""However we welcome ideas on how to ensure the ongoing success of the smart meter roll out and are already working with Ofgem on issues raised in the report."
The National Audit Office is already investigating the economic case for the roll-out of smart meters, and is due to report sometime this summer.The National Audit Office is already investigating the economic case for the roll-out of smart meters, and is due to report sometime this summer.
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