Navigant Research Blog

British Smart Meter Rollout Hits a New Snag

Neil Strother — November 24, 2014

There is another delay in the rollout of smart electric and gas meters in Great Britain.  The deployment of more than 50 million meters was expected to begin in the fall of 2015, but now that starting date could be up to a year later, meaning the fall of 2016.

The delay comes as the entity in charge of the communications system, known as the Data Communications Company (DCC), has said it is not feasible to meet the fall 2015 start date.  The DCC, which is run by outsourcing vendor Capita, blames the delay on U.K. government officials who changed the specifications that required redesigns for parts of the systems.  The delay is expected to add an additional $140 million to the expected $17 billion cost of the multiyear project.

This new delay follows an earlier postponement announced in 2013.  This new delay could mean that the mandatory completion target year of 2020 will not be met. However, the U.K. Department of Energy and Climate Change (DECC) maintains that the deadline will still be met.

Pushback for Vendors

For the meter vendors and technology providers involved, like Sensus, Landis+Gyr, and Trilliant, the new delay pushes out their delivery cycles and could negatively affect their financial pictures as well.

So far, the other large European smart meter deployment in France (as noted in Navigant Research’s report, Smart Meters) is still on schedule, with the installation of the first 3 million meters expected to begin sometime in the third quarter of 2015.

No doubt there is plenty of frustration among the parties involved in the British project, but what they plan to do is undeniably complex.  Connecting one type of smart meter, electric for instance, poses enough of a challenge, but connecting both an electric and a natural gas meter at the same time and expecting the communications elements to run smoothly is asking a lot.  Further delays, or at least a speed bump or two, are more than likely.

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