Every house to have gas and electricity 'smart' meter by 2020... but homeowners will have to foot the bill

Published 11th May 2009

All homes in the UK will have their gas and electricity meters replaced by 'smart' meters by 2020, the Government announced today.

Ministers claim the new meters will allow homeowners to see exactly how much energy they are using and how much they are being charged for gas and electricity in real time.

But the plan is likely to trigger a backlash from many cash-strapped families who could be left with a hefty bill to install the meters.

Industry sources say that the £7bn cost of the scheme amounts to around £15 per household per year between 2010 and 2020.

However, the Government hopes it will lead householders to reduce the amount of energy they use, lowering bills and contributing to a cut in CO2 emissions.
meter

Smart meters enable meter readings to be taken remotely and, together with a display device, give householders real-time information on their energy use.

British Gas described the proposal as 'the biggest revolution in energy use since the 1970s'.

Phil Bentley, managing director of British Gas, said: 'Smart meters will lead to the single greatest revolution in energy use since we converted all the nation's homes to natural gas in the 1970s.

'At British Gas, we have the largest smart meter trial in the country, and we know this technology has helped put our customers back in control of their energy usage.

'Smart meters will 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 - and the 'smart grid' of the future.'

The information the meters provide will help consumers to see what energy they are using, meaning the end of estimated bills, no more having to stay in for home readings, quicker and smoother switching between suppliers and cheaper and easier prepayment.
Ed Miliband

Climate Change and Energy Secretary Ed Miliband told GMTV: 'This is a big deal because basically we've got 47 million meters across this country and what we're saying today is we want every one of those replaced within about ten years.

'It basically does away with estimated readings so the companies will know how much you're using so you won't get that frustrating thing of overpaying on your bills.

'You will be told how much gas and electricity you're using and how much it is costing you and the experiments so far have shown that can save people a lot of money because they become much more conscious about how much gas and electricity they are using but also what are the times of day when it costs more, what are the times of day when it costs less.'

EDF Energy is currently trialling up to 3,000 smart meters, most in London, and said in a statement that it welcomed the consultation.

A spokesman said: 'Smart meters can provide domestic and SME (small and medium enterprise) customers with real-time consumption data that will assist them in adopting energy-efficient behaviours.

'Furthermore, smart meters provide a range of opportunities for suppliers to offer new services and new pricing structures that support energy efficiency, and will enable all bills to be based upon accurate information.'

The Government said the preferred 'roll-out option' would be where energy suppliers are responsible for the installation and maintenance of the meters but the communication to and from the device is co-ordinated by a third party across the whole of Great Britain.

Mr Miliband said: 'The cost of replacing the meters would be spread over a 'long period' of ten to 20 years and the benefits to consumers will outweigh the costs to people. This is a big project affecting 26 million homes and several million businesses, so it's important we design a system that brings best value to everyone involved.'

A spokesman for Consumer Focus, the independent watchdog, welcomed the move, saying: 'Visiting every home in the UK is a once-in-a-lifetime opportunity and should also be used to help make people's homes more energy-efficient.

'Government should show leadership and make sure that this roll-out is joined up and the opportunity isn't wasted.

'Energy suppliers, not just consumers, will make savings with smart meters. Energy companies should take on their fair share of the cost burden of installing these meters and not pocket these savings.'

Shadow energy and climate change secretary Greg Clark said: 'We welcome the Government taking another of the proposals from our Low Carbon Economy Green Paper, but their timetable seems frustratingly slow.

'In other countries around the world, smart meters are already being rolled out now, resulting in savings of up to 15 per cent on energy bills and reduced CO2 emissions.

'Labour ministers have been talking about smart metering for years, yet they still haven't made up their minds on how this technology is to be deployed in the UK.

'The Government had previously indicated that the timetable would be for roll-out by 2017, but this has already slipped back. Ministers must speed their programme up so consumers and the environment can start to feel the benefits.'

Source: ' Daily Mail '

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