Press Release

The speed at which UK energy suppliers will be required to install smart meters in their customers’ homes is to be accelerated, according to the Government’s Smart Metering Prospectus, released yesterday (Tuesday, 27 July).

But while welcoming the move, which could significantly help to reduce the country’s carbon footprint, leading law firm Shepherd and Wedderburn has expressed concern at a number of unanswered questions.

Lesley Gray, solicitor in the Energy and Utilities Group at Shepherd and Wedderburn, said: “The long-awaited prospectus outlines how the roll-out of smart metering, which was covered in recent EU legislation, will be implemented. It sets out in detail what the implementation will mean for energy suppliers, as well as consumers.

“However there are a few gaps in terms of a roll-out plan that will worry the energy industry. Crucially the prospectus fails to address how energy companies will recover their investment if customers exercise their right to switch to another supplier shortly after a meter is installed.

“The investment costs required in relation to smart metering will be significant and how suppliers recover these costs will be of particular importance – the prospectus makes it clear that suppliers will be prohibited from charging customers up front.

“The issue of consumers switching will therefore be the subject of much debate as the prospectus goes out to consultation. Suppliers will be particularly keen to protect their investment.”

Shepherd and Wedderburn is now studying the prospectus closely and advising clients keen to get involved in the consultation.

Gray continued: “There is no doubt the acceleration of smart metering will be almost universally applauded. However, the need to speed up means debate and decisions must take place soon, and the industry must gear up for this if it is to ensure risks are kept to a minimum.”