On 4 January 2017, we published a consultation on our approach to regulating large energy suppliers with respect to their smart meter rollout plans, and the setting of annual milestones. This consultation closed on 15 February 2017.
Following consideration of the responses received to our January consultation, we have decided to proceed with the proposed amendments by issuing a further direction, annexed to this letter.
The effect of these changes can summarised as follows:
- Suppliers will be required to submit a revised rollout plan with revised annual milestones in January 2018 where new evidence exists that will or could have a material effect on previously submitted annual milestones or the assumed completion rate ; and
- We will clarify the link between the revised rollout plans and the obligation in the supply licences to take all reasonable steps to complete the smart meter rollout (the “2020 rollout obligation”).
This decision recognises that suppliers will develop their approach to the installation of smart meters as the programme progresses. These amendments create a framework that prompts suppliers to keep their plans under review, maintain appropriately challenging annual milestones, and ensure any revisions are made with a view to completing the 2020 rollout obligation.