NEWS
New Technologies  

UK plan to roll out smart meters by 2020 will not be met

The UK government's plan to install smart meters in every home by 2020 will not be met because it has underestimated the time it takes to install and the technical standards for the second generation of smart meters, the National Audit office said Friday.

The NAO said the cost increase is a conservative estimate as it does not include the potential cost of replacing less technologically advanced SMETS1 meters. Nor does it factor in costs that will be incurred if energy suppliers do not bring installation costs down from where they were at in 2017, the watchdog said.

Significant technical delays meant the first wave of second-generation smart meters (SMESTS2) only occurred in July 2017, more than three years later than initially planned. In their absence, energy suppliers have installed 12 million first-generation smart meters (SMETS1), more than the 5.4 million planned by the UK Department for Business, Energy and Industrial Strategy (BEIS).

Because the SMETS2 rollout was significantly delayed, sticking to the 2020 deadline is putting increasing pressure on the program's timetable, increasing the risk of cost escalation and/or technology being rolled out before defects have been addressed, NAO said in a report Friday.

"The rollout of this many SMETS1 meters was the unintended consequence of the BEIS aiming to install smart meters quickly," the NAO report said. "The BEIS decided on this strategy without making an economic assessment of its implications. It says rolling out SMETS1 meters has allowed consumers to experience the benefits of smart metering early. However, most of the benefits enabled by smart meters will be realized in the long term, and so did not require an urgent rollout."

In 2016, the BEIS put the cost of the program at GBP11 billion and estimated it would bring economic benefits of GBP16.7 billion. The costs are equivalent to GBP374 per dual fuel household (in total, rather than annually).

"It is currently uncertain whether all of the industry cost savings forecast by the BEIS will materialize," the NAO said, in part because of the extra 7.1 million SMETS1 meters that have been rolled out.

News No: 2694
Date: 2018/11/23 - 20:33
News Source: S & P Global Platts

UK  SMESTS2  BEIS  GBP 

Comments:

Leave a Comment:

   
   
   
 

Japan Will Resume Iran Crude Purchases in Jan.

Japanese refiners will start buying Iranian crude oil in January, but will only continue buying until March to make sure they don’t get on the bad side of Washington in case the 180-day sanction waivers are not extended, S&P Global Platts reports, citing the head of the country’s Petroleum Association.
 

Japan’s Refiners to Seek Extension of US Waiver to Import Iranian Oil

Japan’s oil refiners will continue to ask the Japanese government to seek an early extension of the US waiver to import oil from Iran, the head of the Petroleum Association of Japan (PAJ), Takashi Tsukioka, said.
 

Japan: Tokyo Steel Cuts Scrap Prices; Utsunomiya Work Prices at 7-Month Low

Steelmaker cuts scrap prices by JPY 500/MT (USD 4) at all works today
 

Japan Could Stop Loading Iran Oil After April

Japanese buyers are unlikely to load Iranian oil after April 1 without an extension of the country’s current waiver because of the difficulty in making payments before sanctions are reimposed in early May, the Petroleum Association of Japan said on Tuesday.
 

EU HRC: 'Black Friday' for some buyers

Some northern European steelmakers are being more aggressive with offers into the south of the continent amid a seasonal buying slowdown.
 

Iraq's Somo receives Kirkuk crude at Ceyhan

Iraq's state-owned crude marketing company Somo had received just over 250,000 bl of Kirkuk crude into its storage tanks at the Turkish port of Ceyhan, as of 0900 local time today.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners