Smart meters are expected to save households an average of just £11 annually on energy bills, far less than originally anticipated, according to a report by a parliamentary group. The 92 MPs and peers now predict a dual fuel saving of £26, down from earlier estimates.
The critical report also warns that the government is likely to miss its own 2020 deadline for completing the £11bn switchover, which involves installing up to 53 million smart meters in 30 million homes and businesses. Conservative MP Grant Shapps, chairman of the British Infrastructure Group, said the programme had been 'plagued by repeated delays and cost increases'.
Mr Shapps highlighted that first-generation smart meters, which often stop working when customers switch suppliers, will continue to be rolled out until next year. He called for a shift to a reliable timetable and tougher regulation. The government maintains that smart meters are already putting consumers in control of their energy use.
The report claims most savings will go to energy firms, not consumers. It also notes that more than half of smart meters 'go dumb' after switching supplier, and up to 10% fail due to weak mobile signals. The MPs recommend completing the rollout by 2022 and compensating customers for meter malfunctions.
