Energy Bosses’ Fury Over IoD Smart Meter Call

Britain’s energy companies have launched an extraordinary attack on one of the country's most respected business groups amid calls for the Government to scrap an £11bn scheme that will see smart meters installed in every UK home.

Sky News has obtained a copy of a private letter from Lawrence Slade, the chief executive of EnergyUK, in which he accuses Simon Walker, director-general of the Institute of Directors (IoD), of producing a “flawed”, “damaging” and “ill-informed” analysis of the issue.

Mr Slade’s attack follows an IoD report late last month which said that the UK-wide rollout of smart meters should be “halted, altered or scrapped” to avoid an “unjustified, over-engineered and expensive mistake”.

The Government initiative is due to be completed by the end of the decade and could cost as much as £11bn, although some analysts suggest that consumers could ultimately save a far greater sum from the installation of the new technology, which will replace estimated meter readings.

It is the latest conflagration to engulf the energy sector at a time when the supply of gas and electricity is at the centre of a political crackdown and a wide-ranging probe by competition regulators.

Mr Slade’s letter to Mr Walker is far more robust than EnergyUK’s public response to the IoD report, which said only that: "The national roll-out of smart meters is one of the most significant infrastructure projects the energy industry has seen for years.

"It will make estimated bills a thing of the past, help improve energy efficiency and be of great value to consumers.

"As with any project of this size there are many challenges to overcome and Government support is essential.

"However, the industry is committed to facing these challenges and delivering cost effective, practical solutions for consumers."

Mr Slade’s private letter, however, represents an extraordinary salvo against the IoD, whose members include tens of thousands of company directors from across the UK, including many who work in the energy industry.

In the letter to Mr Walker, he wrote: "My members will be responsible for the rollout so I was surprised and concerned that, particularly as I am an IoD member, Energy UK was neither asked for information or comment. I cannot stress enough that ill-informed comment, such as contained in your report, is extremely damaging.

"Smart metering has already been shown to help improve trust between energy suppliers and their customers, bringing an end to estimated billing and giving consumers much greater understanding and control on their energy usage.

Mr Slade labelled the IoD report as being "flawed throughout" and slammed a proposal that consumers should take a photograph of their meter reading an text it to their supplier as an alternative to smart meters as being "to say the least, misguided".

He went on to say: "Leaving aside the essential need to upgrade the UK energy sector if we are to harness the full benefits of a competitive market, your report risks undermining this major programme which aims to give customers greater control over their energy costs.

"Without buy-in to adopting new technology the UK risks losing its leadership in flexible energy markets, essential to meet our future energy challenges.

"The roll out is also supporting thousands of jobs across the country and encouraging significant new investment in UK plc."

The IoD's call for the smart meter programme to face the axe reflects an increasingly interventionist approach in key business issues adopted by Mr Walker.

Since taking the helm of an organisation traditionally known for its reserve, he has mounted attacks on pay at Barclays (LSE: BARC.L - news) and the transparency of the City’s top fund management institutions.

An IoD spokesman declined to comment on Mr Slade’s letter.