Dara Calleary (Mayo, Fianna Fail)
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329. To ask the Minister for Communications, Energy and Natural Resources the amount of funding provided under the capital plan for the national smart metering programme; the amount spent to date; the expected completion date; and if he will make a statement on the matter. [18837/17]

Denis Naughten (Roscommon-Galway, Independent)
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The National Smart Metering Programme is a transformational, national project to upgrade both electricity and gas analogue meters to digital meters. This upgrade will bring many benefits to energy consumers in terms of greater levels of choice and innovation of products and services in the market.

The Programme, which includes both electricity and gas meters, is managed by the Commission for Energy Regulation. ESB Networks will be responsible for the roll-out of electricity smart meters and Gas Networks Ireland for the rollout of gas smart meters.

The overall cost of the programme is estimated at €1bn. This includes the procurement of upgraded electricity and gas meters, the communications network, rollout and deployment and the associated upgrades of IT systems and processes for ESB Networks, Gas Networks Ireland and energy suppliers.

No funding is provided under the capital plan. The costs of rolling out smart meters will be included in the costs of distribution networks in the same way as all other infrastructure investments are paid for. These costs are subject to approval by the regulator and charged by ESB Networks and Gas Networks Ireland to energy supply companies. The energy supply companies generally include these costs in customer bills.

To date, the Programme has undertaken a significant amount of preparatory work before rollout commences. This work ranges from updating consumer policy and protections, consumer engagement, cost-benefit analyses, etc. The CER sees this preparatory work as key to ensuring a smooth transition for all energy consumers when smart meters are being rolled out and in the years 2012 – 2015 inclusive CER’s spend has been approximately €6.77m. In addition, the CER in its five yearly price review process – that process whereby the CER sets the transmission and distribution revenue that can be collected from the customer – confirmed a spend by ESB Networks of €12.9m over the period 2011-2015. The equivalent process for gas is a later time period, 2012-2017.

The Programme is currently undergoing an extensive re-planning exercise.  The CER is engaging with ESB Networks, Gas Networks Ireland, my Department, suppliers and stakeholders to put in place an updated plan for delivery of smart services to energy consumers.