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UK homes trial smart metering

17/8/2009

By the end of 2020, all British homeowners could have their own smart meter to monitor their gas and electricity consumption.

Inaccurate estimated readings are a major cause of customer dissatisfaction and cost energy providers thousands of pounds every year in dealing with disputes and manning customer service help lines. Smart meters would enable homeowners to monitor their their energy use more effectively by taking daily, weekly or monthly readings and noting the immediate effect of switching appliances on or off, meaning potential cost savings for suppliers and consumers.

The technology allows utility companies to monitor their customers′ consumption remotely. Whilst there may be some concern that this is just another Big Brother initiative, British Gas believes the benefits will be considerable in reducing the UK′s energy use and carbon emissions.

Phil Bentley, Managing Director, said "At British Gas, we have the largest smart meter trial in the country, and we know this technology has helped [our customers to] use less energy, cut carbon emissions and save money. Smart meters will also [help to] ensure our homes are as energy efficient as possible, and they will open the gateway to new technologies for renewable electricity generation in the home."

Independent energy supplier, First Utility, has installed 10,000 smart meters in properties across the UK. Mark Daeche, Chief Executive, confirmed that lower running costs have allowed the company to price their services more competitively. "It is a benefit to us. We can provide lower prices as we don't have the overheads of supporting a customer with lots of customer service."

If smart metering is to be rolled out country-wide, around 22 million gas meters and 26 million electricity meters will need to be installed at a cost of £7bn. However, industry experts predict that householders will save £25-35 per year as a result, and the environment will benefit too in C0₂ emissions reductions.

"Smart meters will play an important role in our transition to a low-carbon economy", said a spokesperson for the Department of Energy and Climate Change (DECC). "They will help us meet some of the long-term challenges we face in ensuring that Great Britain has an affordable, secure and sustainable energy supply".

Whilst the Energy Retail Association (ERA) supports the installation of smart meters, it is, however, opposed to mandating them for all households. In a letter to The Times on 19 August, ERA Chief Executive, Gary Felgate, said that energy companies "should not be restricted to providing a ′one size fits all′ device" and "should be allowed to offer customers the kind of display they would find most useful." This could be via customer′s computers, TVs or even through their mobile phones.

The Government launched a three-month consultation process on the plans for rolling out smart metering which closed on 3 August. Further information can be found on the DECC consultation on smart metering for electricity and gas web page or on the OFGEM website.