NAO: smart meter risks must be addressed
Thursday, 30 June 2011 11:54 AM
The National Audit Office (NAO) has said today there were “major risks” that needed addressing for the Government to achieve value for money from its £11.3 billion programme to install ‘smart’ electricity and gas meters in all homes across the country.
The Department of Energy and Climate Change (DECC) wants meters installed in all homes and smaller non-domestic premises by 2019; however, the NAO said it did not demonstrate full value for money in the early phase of the programme because planning and budgeting were insufficient to support clear monitoring and accountability.
DECC is now strengthening programme management, the NAO said, but it added there was very little contingency time to address the risk that design approvals, procurement and testing take longer than planned.
NAO said DECC has more work to do before roll-out starts on the security of the system.
Zoe McLeod, energy expert at Consumer Focus, said: “Consumers will end up footing the bill for this multi-billion-pound scheme.
“Success will be measured by whether it delivers real improvements such as helping people to cut their energy use, switch more easily and get better customer service.
“The technical detail of the programme is critical, but Government must stay focused on these core benefits if the purpose in introducing smart meters is to be achieved.”
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