Dáil Éireann Debate, Thursday - 16 June 2016
7. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources if he will consider introducing an opt-in provision for customers in the national smart metering programme; and if he will make a statement on the matter. [16236/16]
View answerThere are proposals out there on the introduction of smart meters. While it is recognised that there are benefits to a smart metering programme, meters are not for everybody. Unless one has particular characteristics in the way one uses electricity, they may not benefit one. Is it the Minister's view that they should be rolled out on an opt-in basis whereby if somebody wants one, he or she can have it or does he expect that they will be rolled out and provided to everybody regardless of choice?
The EU's third energy package stipulates that "where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020". In Ireland, the national smart metering programme, which includes both electricity and gas meters, is managed by the Commission for Energy Regulation. The regulator is developing a cost-benefit analysis on the roll-out of smart meters. The cost-benefit analysis results are due in the first quarter of next year and that will be the key determinant in relation to the scale, scope and timing of the roll-out. The roll-out will include replacement with new smart meters of electricity meters by ESB Networks and gas meters by Gas Networks Ireland.
I have been informed by the regulator that a customer who does not want an upgraded meter will be able to decline to have this new meter installed. However, the intention is that the default position will be the installation of a smart meter for newly constructed dwellings and other premises or where meters are due for replacement at the end of their life. It is important to recognise that the full benefits associated with smart meters will only be realised by people using this technology to change their behaviour by reducing their energy usage or moving their use to times when energy costs less. To help inform people, the regulator is working with the network companies, energy suppliers and consumer interest groups to develop the necessary information for people on the benefits of smart meters. As a result, people will have greater awareness of the benefits and be more likely to view the roll-out of smart meters positively.
It seems the Minister is referring to an opt-out rather than an opt-in, and one that will not be mandatory. I have some concerns in that this has the potential for unfair pressure being placed on a cohort of people who are often referred to as fuel-poor customers. What is effectively being put in place is a technology that can charge more at peak times. That is helpful if someone is in a position to manage his or her budget, but it could be used unfairly in respect of a certain cohort.
I hope that all aspects are made clear to consumers. The installation of meters is a cost that must be borne by them. I know how they will be sold by the organisations, namely, that one can manage a fuel bill better and consume energy at cheaper times. However, we all know that if one uses electricity at 1 a.m., it is cheaper for the companies, but one cannot feed children and large families cannot be expected to do their washing or drying at that time.
I thank Deputy Dooley for raising that concern, as it had not yet been raised with me directly. I would be concerned by anything like that happening.
The approximately 500,000 meters that must be replaced will be replaced with smart meters. I do not know whether there will be an option at that stage to opt out. In terms of the cost-benefit analysis, there is still a question mark over whether there will even be a general roll-out. Within 12 months of a smart meter being installed, the energy company must provide the customer with the option of time-of-use tariffs, but it is up to the customer to decide whether to accept it or use the current flat-rate tariff. No decision has been made to phase out the existing charging regime. Even if a smart meter is installed in a house, a person will still receive the same charging structure. People can opt into time-of-use tariffs.
The Deputy may correct me if I am wrong, but his concern seems to be more about the time-of-use tariffs than the smart meters. I appreciate that it may be an issue and something that needs to be addressed, but I will allay the Deputy’s fears. The Commission for Energy Regulation, CER, has carried out a number of consultations on this matter and engaged with several consumer interest groups, including the Society of St. Vincent de Paul and the Money Advice & Budgeting Service, MABS. We will take these concerns on board and have them addressed in the overall context. It is important that there be an uptake, that this measure only be positive and that there be no stick to penalise any family.
