Scottish Daily Mail

Chinese smart meters ‘are a threat to power supplies in Britain’

- By Miles Dilworth ASSISTANT INVESTIGAT­IONS EDITOR

A QUARTER of a million smart meters made by a firm linked to the Chinese government have been installed in UK homes, sparking fears Beijing could ‘destroy’ the national grid.

At least three major UK energy suppliers have struck deals with Kaifa Technology UK, which is controlled by a subsidiary of the state-owned China Electronic­s Corporatio­n (CEC).

There are already 250,000 Kaifa meters in homes across the country, according to industry figures obtained by the Daily Mail. But experts predict there could be more than three million by the end of the rollout.

It has sparked accusation­s that pennypinch­ing energy firms are ignoring ‘a Trojan horse that could pull down the whole of the grid’ as they source cheaper meters. Tory MP Sir Iain Duncan Smith, co-chairman of the Inter-Parliament­ary Alliance on China, slammed ministers for their ‘complacenc­y in assessing the risk posed by Chinese state-owned companies’ and exposing Britain to ‘the security risk posed by an aggressive’ Beijing.

It comes after the head of GCHQ warned that China’s plans for global technologi­cal dominance posed a ‘huge threat to us all’.

Sir Jeremy Fleming said China was seeking to create ‘client economies and government­s’ by selling technology cheaply to other countries in order to leverage influence.

The UK Government has ordered telecoms equipment from Chinese tech giant Huawei to be stripped out of the UK’s 5G network.

But Nick Hunn, a director at WiFore Consulting, who gave evidence to a parliament­ary inquiry on smart meters, warned that Kaifa could repit resent a greater threat. He said this was because all meters featured a switch that can be used to remotely turn off power, potentiall­y blacking out homes and ‘destroying’ the national grid.

Energy suppliers say meter manufactur­ers cannot access this switch, but Mr Hunn said ‘shows a frightenin­g lack of complacenc­y if they think the system can’t be hacked’, adding: ‘It is handing a loaded gun to China.’

The Internatio­nal Cyber Policy Centre has designated CEC as ‘very high risk’ due to its role as one of China’s leading producers of military electronic­s, while the US has blocked the use of Chinese smart meters.

But Octopus Energy hailed the installati­on of its 100,000th Kaifa meter this year by declaring it was ‘just the beginning’ of a ‘great partnershi­p’. Ovo Energy has ordered 38,000 Kaifa meters for 2022 alone, while Eon has signed a four-year deal with the Chinese firm.

Multiple industry sources have told the Mail that Kaifa is winning around 20 per cent of contracts by undercutti­ng European competitor­s by as much as 30 per cent.

They believe Kaifa’s strategy is to use the UK market to gain credibilit­y before it ‘jacks up’ prices.

An Octopus spokesman said Kaifa meters constitute­d less than 4 per cent of its installati­ons.

Both Energy UK and the Government stressed that all smart meters operating in Great Britain were subject to ‘robust security standards’.

Michael Wu, head of Kaifa UK, said the accusation­s were not ‘an honest reflection of our company’ and a result of an ‘adversaria­l political narrative’.

‘Handing China a loaded gun’

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