Smart Meter Targets
At npower Business Solutions (nBS) and our sister company E.ON Next, we support the government's objective to get a Smart meter in every business and home by the end of 2025. This will help customers to budget and control when and how they use their energy. It will also be a way of helping the UK achieve its net zero target. To date, E.ON have installed over 5 million Smart & Advanced meters, which is a great achievement and shows our ongoing commitment.
In 2020, the government set a formula for each energy supplier's 2022 Smart meter installation target. That means, based on the number of nBS and E.ON Next customers who didn’t have a Smart meter at the start of 2022, we were set a challenge to install 340,455 gas and 497,690 electricity Smart meters by the end of this year. A further breakdown of these targets is provided in the table below. The numbers in brackets show how we did against each of these targets. In 2022, market conditions had a big influence on how close we were able to get to the number of Smart meter installations we had targeted. The needs and priorities of customers have changed plus we know these are unprecedented times. Many suppliers have struggled to survive and some have exited the market. In 2022, we also saw the energy and cost of living crisis intensify and we are still experiencing the post-pandemic impact from Covid-19 and the effect this has had will not have been factored into the government's consideration when calculated two years ago.
The table below shows the 2023 Smart & Advanced Meter installation targets for nBS and E.ON Next. Just as with 2022, the Calculated Planned Annual Target for gas and electricity is determined by the formula set by the government two years ago (as noted above). The breakdown shows how we have apportioned that target to the different customer groups.
We expect many of the challenges we experienced in 2022 to continue this year. Due to the current market conditions, we believe a review is required and are aiming to agree a solution and framework that, in the current climate, is realistic, achievable and works for our customers and the overall success of the Smart meter rollout. We're talking to the government and the regulator about the Smart rollout strategy and framework through to the end of 2025.