Linda Gilroy MP for Plymouth Sutton constituency has today called on the Government to provide the energy industry with a mandate to roll out smart meters. 

Over the next few weeks the Government is set to make a decision on the future of smart metering in the UK.  The decision follows a consultation by the Department for Business, Enterprise and Regulatory Reform (BERR) into Energy Billing and Metering, and will fundamentally change the way people are billed for their domestic energy use.

The Energy Retail Association (ERA) is calling on the Government to provide a mandate to the energy retail industry to roll out 45 million domestic smart meters. A change that would end estimated billing and put consumers in full control of their domestic energy use. It is the energy industry’s view that the business case for smart meters, and competition law, require that a mandate is provided by primary legislation.

Smart meters could revolutionise the way in which consumers use their energy.  By allowing the consumer to view how much energy they are using and how much that costs in real-time, smart meters empower consumers to be more energy efficient, save money on their bills and reduce their carbon footprint.  

The call for a mandate already enjoys support from the six largest energy suppliers, numerous MPs and energywatch - the consumer watchdog. 

Linda Gilroy said: “Smart Meters have the potential to change the way we use energy.  They can make us more energy efficient, produce cheaper bills and make us all greener.  I hope that the Government will give the industry the mandate that it needs.”

“I am also keen to see the teams that are working on this issue in energy make links with those who are discussing what smart metering can do for water customers to deal with issues of drought and shortage – and through appropriate tariffs, fair bills and affordability.” 

Duncan Sedgwick, chief executive of the ERA said: "We need the green light from the Government to roll out smart energy meters across the country. We want to get started but we can't have the vital discussions needed to deliver smart meters - because of legal constraints - until the Government gives us the formal mandate. Smart meters will revolutionise our industry and have huge benefits for all customers."

10 March 2008

 What are smart meters? :Smart meters are the next generation of electricity and gas meters.  They allow: 

• Two way communication between the supplier and consumer of electricity and gas consumption data

• Easy access by consumers to this data via, for example, a display device or computer

• Remote reading of meters by suppliers without visiting consumers’ homes

• The ability for consumers to switch between debit and credit

• The facility for consumers to ‘export’ electricity back to their supplier

• The provision of new tariffs and services to consumers

• Putting consumers in control: Smart meters will give consumers real-time information about the energy they use in the home.  Consumers will know how much energy they are using at any time and precisely how much this is costing them.  Suppliers have given a guarantee that consumers will have easy and understandable access to consumption data through, for example, remote display devices, TVs or computers.

• Hassle-free billing: Smart meters will provide the customer and the supplier with automatic and accurate meter readings, bringing an end to estimated bills.  This will improve consumer satisfaction with the accuracy of their bills, meaning less need to complain to energy suppliers and energywatch.  Remote meter reading and diagnosis of meter faults will also mean considerable cost savings for suppliers.

• A greener future: Smart meters will allow both gas and electricity consumers to make savings on their bills by reducing unnecessary use of energy as a result of feedback on their energy use.  Smart meters for gas consumers are particularly important, because gas accounts for approximately two thirds of total energy use in Britain.  Suppliers will also be able to introduce new tariffs that encourage consumers to make savings by reducing their energy use during ‘peak demand’ periods.  Consumers with solar panels or other ‘micro-generation appliances’ will be able to sell electricity back to their suppliers.

• Fairer charges: All consumers will be provided with the same type of meter, regardless of whether they pay by credit or debit.  Suppliers will no longer need to visit properties to switch consumers between credit and prepayment.  Problems such as misdirected payments and card and key replacement costs will be eliminated. All these factors will help reduce any maintenance or installation costs associated with some pre payment meters.

• New services for consumers: Smart meters will allow suppliers to introduce a range of new and innovative services for consumers, including vulnerable and low income consumers.  These might include early warning systems for older people, intervention if a prepayment meter consumer has ‘self-disconnected’ for a prolonged period, tailored advice on how to reduce unnecessary energy use, demand management facilities and many others.

• A new energy market: Smart meters provide an opportunity to transform the relationship between suppliers and consumers.  Rather than provide units of energy, smart meters will enable suppliers to provide the services consumers actually want, namely heat, light and power.  This means an energy market in which consumers are actively engaged in their use of energy and are empowered to demand the type of services, particularly energy efficiency, they require.