Smart Meter Rollout Programme Suffers £1.5 Billion Miscalculation!

November 25th, 2019
Smart

As the government is keen on smart meter installation across all UK homes, installation is mandatory for all energy suppliers. The main reason for this was the 5 million customer complaints received by Ofgem where energy suppliers were blamed for inaccurate billing. To avoid such issues in the future, the government decided to roll-out smart meters in 53 million homes across the UK. The plan is to finish the installation project by 2020 and the total estimated amount for it was calculated as £11 billion.

However, according to new research done by the Big Deal and ITV, it was discovered that the cost of installation was underestimated by around £1.5 billion. This information now pushes the total cost to £12 billion.

Main reasons for the change in overall cost are:

The government underestimated the number of homes that need smart meter installation. The actual homes are more than the number calculated previously and would cost an installation charge of £67 for each home. It is still cheaper when compared to the £107 cost incurred if the supplier changes both the meters.

The BEIS also failed to find the exact percentage of homes that need second visits. It suggested only 5% homes would need a second visit while the actual figure comes up to 15% or more.

Another upsetting finding of the research is that those homes with new smart meter installation are facing real time issues like in-home display not working properly. The meters are even blamed for sending the wrong data to the suppliers with some suggesting interruptions in the communication between the supplier and the meter.

Shay Ramani, founder of FreePriceCompare.com shared his opinion on the matter by saying that “The only issue with the smart meter rollout project is that the cost of the delay would be passed on to the consumers. It would result in much higher electricity bills and so, any loopholes would weigh heavily on the bill payers.”

Energy and Industry Minister Jesse Norman said: “Smart meters are a vital upgrade to Britain’s energy system. The technology offers consumers a modern service that puts them in control, helps them to save money and use less energy with up to date information on their energy as they use it.”

To sum up, smart meter installation are a positive step towards cutting down energy bills. However, the delay in installation would be reflected on the customer’s bill which means that initially the smart meters would cost you more than expected. Eventually, the bills would fall and you can enjoy much reduced energy bills.

You may like: Smart meter rollout has proved successful- 80% users recommend it

To save yourself from paying heavy bills, just ensure that you are on the cheapest energy tariffs or if that does not help then switching the supplier is the best option. If you find it difficult to find the energy supplier that offers discounted deals and cheaper tariffs then check https://freepricecompare.com/home-energy/. We will help you grab some special deals and offers by reliable energy supplier without charging a single penny. To know more about our services, feel free to call our smart and efficient team of energy comparison experts on 02034757476.

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