Willie Penrose (Longford-Westmeath, Labour)
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1085. To ask the Minister for Communications, Energy and Natural Resources if the proposed national smart metering project will still be proceeding notwithstanding that it appears, in the context of a recent cost benefit analysis, that savings, if any, would be minimal for homes, residents and businesses; and if he will make a statement on the matter. [41605/14]

Alex White (Dublin South, Labour)
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The National Smart Metering Programme (NSMP) is a central component of the Government’s strategy to enhance management of energy demand, deliver smart networks and enable greater energy efficiency. It is also aligned with EU obligations on Member States under the Energy Efficiency Directive to progress smart metering. Under the European Union (Energy Efficiency Regulations) 2014 the roll-out of smart meters is a function of the Commission for Energy Regulation (CER). The CER, as the competent authority for the rollout of smart meters, evaluates the benefits and costs of the programme at all key stages. The first of these evaluations involved a major programme of technology and user trials and showed that a national rollout of smart meters would be likely to lead to overall reductions in electricity and gas consumption and a reduction in peak-time electricity consumption of over 8%. This first cost benefit analysis (CBA) carried out by the ESRI and Frontier Economics estimated a positive net present value (NPV) of €225 million. The most recent CBA, by PWC, showed a central negative NPV of €54 million. However, based on the scale of overall NSMP expenditures, as well as the significant uncertainty which still attaches to certain of the most significant assumptions of cost, PWC indicated that the result should be interpreted as broadly neutral. On this basis, CER consider that the CBA supports the continuation of the programme into the detailed design phase. A further programme evaluation has been scheduled by the CER for 2016 when clarity on procurement costs and a fuller analysis of qualitative benefits will be available.

I welcome the ongoing progress on this important project and look forward to the final ex-ante evaluation scheduled for 2016.