‘Smart metering’ is coming to your home

The Government plans to put a new ‘smart meter’ in every home by 2020 to reduce energy consumption and prepare Britain for the eventual move to a low-carbon ‘smart grid’.

According to a report released yesterday by the Department of Energy and Climate Change, the smart electricity and gas meters provide accurate real time information on energy consumption. It is hoped that this information will help consumers save money on their bills and to reduce their carbon emissions.

It will mean that readings will be in real time, with no need to wait in for someone to come and read your meter. It will also mark the end to estimated bills and is expected to make it easier for householders to switch suppliers and open up a greater range of tariff packages.

The move is being billed as part of the major expansion towards smarter energy use in Britain, with future initiatives to include the use of new and renewable energy sources, home micro-generation and electric vehicles.

The roll out up to 2020, which will involve visits to over 25 million households to replace something approaching 50 million meters, is expected to deliver net benefits of between £2.5bn and £3.6bn over the next 20 years, and a reduction in UK carbon emissions of about 2.6 million tonnes per year by 2020.

It is thought that the roll out will cost in the region of £8.11bn, the cost of which will be borne by the utility providers. However, some critics warned that consumers may bear some of the brunt of the cost if it passed on to them through increased energy costs.

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