EU DIRECTIVE-GOLD PLATED BY U.K. ? Smart meter plans to be outlined
By John MoylanBusiness reporter, BBC News
The government is to unveil plans for every home in the UK to be
equipped with smart meters by the end of 2020.
Smart meters allow suppliers to remotely record customers' gas and
electricity use, and let consumers see how much energy they are using.
Some 26 million electricity and 22 million gas meters will need to be
fitted at a cost of £7bn.
Smart meters end the need to dispatch meter readers, meaning huge
savings for energy firms who hope bills will fall.
It is also hoped that smart meters will mean an end to estimated bills
and call centre staff who deal with related complaints.
British Gas said the move would reduce the UK's energy use, cut carbon
emissions and save customers money.
Cost savings
Energy providers will have the responsibility to fit the meters in what
amounts to the biggest programme of work since British Gas converted
appliances in 17 million homes to natural gas back in the 1970s.
Industry sources say that the £7bn cost amounts to around £15 per
household per year between 2010 and 2020.
“ I've managed to save about a tenth, both on energy and gas, since
having the smart meter because its made me conscious of the energy I'm
using ”
Smart reader user Lloyd Matthews
But £10 of that will be accounted for in cost savings by the suppliers.
That leaves the customer picking up the other £5.
But the average consumer is also likely to save 2% to 3% off their
energy use each year, and thus cut £25 to £35 off their bills.
So overall, households could be better off to the tune of more than £20
a year.
The government believes we could all save around 2% off energy use. That
would cut £100m from our bills by 2020. It could also reduce our C02
emissions by 2.6m tonnes.
A new industry-backed Central Communications body will be established to
handle all the meter reading data.
'Benefit'
One of the smaller energy companies, First Utility, has already
installed smart meters in the homes of its 10,000 customers.
The firm's chief executive Mark Daeche says the lower running costs
allows the company to offer competitive prices.
"Of course it is a benefit to us," he said.
"We can provide lower prices as we don't have the overheads of
supporting a customer with lots of customer service."
Lloyd Matthews and his wife Sussanna live in East London. They are EDF
customers and they have been using a smart meter for the past two years.
The meter comes with a display unit that shows Mr Matthews exactly how
much electricity and gas he is using. He can also compare his energy use
on a daily, weekly or monthly basis.
Mr Matthews says that knowledge has enabled him to reduce his energy
bills without hampering his lifestyle
"I've managed to save about a tenth, both on energy and gas since having
the smart meter, because its made me conscious of the energy I'm using,"
he said.
The government is to launch a three-month consultation process on the
plans.
Have you been stung by an energy bill based on estimates? Do you welcome
the plan to install these meters? Who do you think should pick up the
cost?
A selection of your comments may be published, displaying your name and
location unless you state otherwise in the box below.
Story from BBC NEWS:
http://news.
Published: 2009/05/11 07:11:39 GMT
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