Dáil Éireann Debate, Tuesday - 14 June 2016
536. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources if the introduction of time-of-use tariffs will result in consumer buy-in to the national smart metering programme, given international experience where this has been tried; and if he will make a statement on the matter. [15343/16]
View answerThe National Smart Metering Programme is managed by the Commission for Energy Regulation (CER). Under the EU’s Third Energy Package, “where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020.”
Across Europe, the appraisal of smart metering has varied. In Ireland, a cost benefit analysis (CBA) is being developed by the CER. The CBA results (due in Q1 2017) will be the key determinant in the scale, scope and timing of the roll-out. In simple terms, it will develop an approach to smart meter roll-out to consumers. It should be noted that many existing electricity meters will require replacement in the coming years.
Time of use (ToU) tariffs offer a different price for electricity at different times of the day. This is similar to the current day/night meters but with the potential for more than two charging periods in each day allowing people to manage their electricity cost by changing when they use electricity.
Following a public consultation, the CER issued a decision on ToU tariffs. Energy suppliers will be required to offer ToU tariffs to customers within 12 months of receiving a smart meter. It will be the customers choice whether to opt-in to use the ToU tariff or remain on their existing tariff.
Over time, as consumers become informed regarding the potential savings that they can make, ToU tariffs are likely to become the norm. The CER intends to monitor developments in the market with a view to phasing out flat-rate tariffs in the future. However, no date has been decided for such a phase-out.
The CER plans to launch a comprehensive public awareness campaign in the run up to smart meter rollout and educating the public about the benefits of ToU tariffs will form a substantial part of that campaign.
