Impact case study database

Darby’s research on the importance of household engagement for smart meter uptake and use has fundamentally influenced the approach of multiple actors, including central government departments, consumer engagement body Smart Energy GB, industry regulator Ofgem, and other public and private energy agencies and providers.

The Early Learning Project Synthesis Report ( R5, lead author Darby, hereafter ‘the Synthesis Report’) has provided the central evidence underpinning the Department for Environment and Climate Change's (DECC, now BEIS) approach to UK smart meter roll-out since 2016. At the heart of the strategy is the supply of households both with smart meters and in-house display units (IHD) to monitor energy use and also, crucially, with training in how to use and interpret them. The programme was expected to generate GBP4,000,000,000 in energy saving benefits in the period 2016-2020 (the programme has since been extended to June 2021 in the light of the pandemic) [ E1].

The Synthesis Report built on a longstanding research relationship between Darby and government departments (Defra, and DECC, which later became part of BEIS in July 2016) charged with reducing domestic energy demand using behavioural change approaches. The Report was pivotal to DECC as it offered the first evidence on the importance of effective customer engagement in energy reduction and encouraged the development of its first evidence-based, behavioural change-oriented roll-out strategy [ E1].

The Head of Benefits and Evaluation at the Smart Metering Implementation Programme (BEIS) until October 2018 attests to the importance of the Report to the roll-out, saying that “the synthesis project has had significant policy value in informing communications with/reviews by political interests (Parliament, NAO [National Audit Office], etc.) about the roll-out, by providing objective, independent evidence” and that it had demonstrated that “the programme is capable of delivering significant long-term benefits to consumers” [ E1]. The Synthesis Report findings subsequently prompted more detailed research by BEIS on consumer engagement through the ‘Smart Metering Energy Efficiency Advice Project’ conducted by IPSOS Mori and the Energy Savings Trust. Their final report [ E2] cited both the Synthesis Report and additional research by Darby on IHD installation practices extensively [ R4, R5, R6]. E2 outlines how Darby's research, “[i]nformed by conclusions drawn in DECC’s Early Learning Project” (i.e. the Synthesis Report), was commissioned with the aim of generating and piloting effective customer engagement approaches, exploring appropriate advice types, and generating recommendations for “energy suppliers, advice providers, and other stakeholders”.

The findings of the Synthesis Report have also underpinned the practice of Smart Energy GB, who are mandated by BEIS to lead co-ordinated consumer engagement activities on behalf of energy suppliers during the smart meter rollout. Discussing the Synthesis Report, the Chief Executive of Smart Energy GB emphasises how it provided direction for the organisation: “because it was a broad piece of research, and that’s its strength, [the findings] were directional, and in order to apply them you would then do considerable other research in order to inform something to be able to design and implement". One example of the uptake of the 'directional' conclusions in the Synthesis Report relates to smart meter take-up among low-income and vulnerable customers. In subsequent research, Smart Energy GB sought to identify further consumer characteristics that might prevent user engagement with smart meters. Their report ‘Smart Energy for All’ from July 2015 built directly on the Synthesis Report’s finding that low-income and pre-pay meter customers were less likely to engage with and/or understand their smart meters, as well as the need to tailor engagement to the needs of such groups, particularly through face-to-face communication [ E3]. The Smart Metering Implementation Programme’s Head of Benefits and Evaluation has confirmed that the focus on tailored engagement with key groups advocated by Darby and Smart Energy GB was rapidly adopted by the Government, Ofgem, and energy suppliers [ E1]. Hence the Chief Executive of Smart Energy GB concluding that "the approaches outlined in the Synthesis Report are absolutely correct” [ E4].

In May 2016, Darby was an invited witness to the House of Commons Science and Technology Select Committee’s ‘Evidence Check’ on smart meters [ E5]. The Select Committee took note of her witness testimony on maximising customer engagement – and the importance of follow-up support for vulnerable customers – and cited it 18 times in the published report [ E5].

The Government’s response to the Evidence Check in November 2016 clearly showed that Darby’s recommendations had been taken to heart. The response indicated that “in order to reflect the available evidence the Government should ensure that in its bid to complete the smart meter roll-out by 2020 it does not compromise on consumer engagement before, during or after installation, including for small businesses. The impact of smart meters will be limited without this support from installers and Smart Energy GB” [ E6]. The response described how as a result of the ELP and the Synthesis Report, the Government had developed advice and guidance materials on working with energy suppliers, and other consumer facing bodies, to make use of these new materials [ E6]. The Government had also heeded the Synthesis Report’s recommendations about vulnerable groups:

“The Early Learning Project also identified that some consumers would particularly benefit from tailored follow-up support to ensure they are able to realise the benefits of smart meters. The Government is therefore carrying out further work to assess the provision of post-installation support for vulnerable and pre-payment consumers and will seek to ensure good practice is shared across industry. We will also continue to monitor the provision of this support and consider further action if necessary to ensure it meets the requirements of these consumers” [ E6].

The Government’s response also reported on the benefits of the smart meter programme, stating that eight in ten users said they had taken steps to save energy at home [ E6] as of November 2016.

In 2018, the ‘Smart Meter Customer Experience Study’ [ E7] report by BEIS demonstrated the effectiveness of the user-focussed smart meter policy, with 80% of consumers reporting satisfaction with their smart meter directly after installation, and 74% still satisfied a year later. The study showed that a year after installation 70% of customers still engaged with their IHD, with 45% looking at it at least once per week. Receipt of printed information and tailored advice at installation were most strongly associated with continued use of the IHD. The Select Committee ‘Evidence Check’ report [ E5] also cited British Gas data which showed average customer energy savings of 3.1% two years after smart meter installation, compared with controls.

The smart meter roll-out programme has experienced many problems since 2016 including limited availability of second-generation (SMETS2) smart meters, consumers experiencing difficulties with switching between energy suppliers due to differences in metering technology, and – more recently – COVID restrictions. Nonetheless, the predicted average savings have been realised and exceeded by consumers buying electricity from companies with the best-developed customer-focused approaches [ E8]. The recommendations regarding key and vulnerable groups articulated in the Synthesis Report [ R5] remain a cornerstone of the Government’s thinking as indicated by a 2020 BEIS report on smart meter policy from 2021 onwards: “We will work with Smart Energy GB and other partners to develop targeted and more tailored engagement with specific consumer groups, such as vulnerable consumers or those who are harder to reach” [ E9]. Ofgem has also proposed that large suppliers should provide data on smart meter installations delivered to credit and pre-payment customers in both start- and end-of-year reporting [ E10], a proposal grounded in Ofgem’s belief that “it is important that suppliers demonstrate that all customers are able to access the benefits that a smart meter can bring and that no customer groups are being left behind.” [ E10].