Blog Post

Number of Smart Meters installed in 2020 surpasses 1 million mark and half a million people switched energy supplier in August

Richard Simmonds • Sep 18, 2020

According to the latest monthly data from ElectraLink, over a million smart meters have been installed across the UK in 2020 as energy suppliers try to make up for the lost time caused by the Covid-19 pandemic. 

Continuing Recovery

Since lockdown measures were eased energy suppliers have picked up the pace in the number of smart meters being installed in domestic and small business properties.


183,000 smart meters were installed in August, a figure that is an increase of 20% on the preceding month's figure.


Areas that saw the most installations were the east of England with 24,000 smart meters installed, Southern England came in second place with 22,000 and the East Midlands brought up third place with 18,000.

Long way to go

Despite signs of improvement the number of smart meters installed remains well down on the previous year with August’s figure being 17% lower. Understandably, overall installation figures are also down as in 2019 1.761 million smart meters were installed from January to August 2019.


At the height of the government-imposed lockdown, just 135,000 smart meters were installed in homes between April and June and these were mostly installed in new builds and vacant properties.

Extended deadlines

With energy suppliers losing several months to hit their smart meter rollout targets the government and Ofgem extended the deadline by an extra six months.


Now, energy suppliers have until July 2021 to hit their installation milestones to satisfy the regulator that they have taken all reasonable steps to get the meters installed.


The governments initial target of 2020 to get smart meters into every home in the country seems delusional after the Data Communications Company (DCC) recently announced that over five million SMETS2 smart meters (the ones that actually work) have been installed. Only another 22 million to go and with the pace of installations the current deadline of 2025 also seems well out of reach.


Read more: Number of installed SMETS2 smart meters hits five million mark (only another 22 million to go)

Making things harder?

One of the major difficulties energy suppliers face when it comes to installing smart meters is convincing homeowners that they will be a benefit to them.


Many are already concerned over security and of being ‘snooped’ on by energy companies and recent news headlines that a planned new generation of smart meter will grant energy network companies the power to switch off central heating systems and electricity supplies without little warning will do little to win over consumer trust.


The plans tabled by Scottish and Southern Electricity Networks (SSEN) would allow distributors to temporarily turn off appliances such as heat pumps and electric vehicle chargers. 

Green Energy Worries

The plans also raise questions over the viability of a fully green economy as the plans were introduced over fears that the drive for green technologies will put immense strain on the energy network.


SSEN stressed the measures would only be used in emergencies and with the full consent of the customer, which can be revoked at any time. They would only apply to heating systems with a heat pump and not those powered by gas. That’s all well and good but when many consumers are already wary of smart meters this will do little to inspire confidence.


Read more: Is ‘Green Energy’ really good for the environment?


“The proposed modification has been tabled to provide a last resort contingency measure, protecting the security of customer supplies during an emergency scenario. Our preference for managing peaks in electric vehicle demand would always be a market-based solution such as a time-of-use tariff, provided by energy suppliers. This proposal provides an additional safeguard in exceptional circumstances,” said an SSEN spokesman.


Read more: What are the advantages of smart meters?


Number of energy switches nears four million mark in 2020

Energy UK has released the latest energy switching figures and they show that 471,441 people switched energy supplier in August.


The figure is a 17% decline on the preceding year's figure and the overall number of switches for 2020 is 5% down on 2019s figure.


The bulk of the switches continued to show smaller/challenger energy suppliers continue to take customers from the larger suppliers. August’s figures show:

  • 44% of energy switches were from larger to small and mid-tier energy suppliers
  • 11% were from small to mid-tier and larger suppliers
  • 21% were between larger suppliers
  • 24% were between smaller and mid-tier suppliers


Understandably figures have fluctuated more than usual this year but it’s encouraging to see that around half a million customers are still switching every month. As we head into the colder months of the year when we use more energy, it’s certainly worth customers speaking to their supplier to make sure they’re on the right tariff or shopping around to see what’s on offer in a very competitive market,” said Emma Pinchbeck, chief executive at Energy UK.


Further Reading

Will Covid-19 pandemic lead to an energy price cap rise next year? Ofgem opens consultation


Citizens Advice sides with Ofgem in network investment row


Majority of Energy Suppliers failing to refund credit to customers within 10 days


Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

 

Between our energy market consultancy services and the software we’ve developed, we’re supporting new UK electricity and gas suppliers to get set up and start supplying.

 

For more information, get in contact with us today. 

 

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