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Zoe Mc Leod: if people can see at a glance how much energy they are consuming, they can use this information to cut down and save money.
THE government has announced that energy providers will be responsible for installing new smart meters in all homes by the end of 2020. These will replace the existing technology, which only records the total amount of gas and electricity used over the lifetime of the device.
Smart meters allow consumers to see how much energy they are using at any given time and how much it’s costing them.
Initial trials suggest that this makes people more conscious about their electricity and gas consumption, which enables them to save money by doing simple things like turning the TV off rather than leaving it on standby.
Zoe McLeod, an energy expert at Consumer Focus, says that if people can see at a glance at how much energy they are consuming, they can use this information to cut down and save money. “Some estimates suggest the average saving will knock 0.5% to 3% off the annual bill, but some households could achieve considerably more which is good for their finances but also good for the environment.”
The new technology also enables the energy providers to remotely monitor their customers’ gas and electricity usage. This means there will no longer be any need for estimated bills, so people will only have to pay what they actually owe.
It is likely that there will be new tariffs with cheaper off peak prices that consumers may be able to take advantage of. “It's thought that around 20% of us will use time-of-use tariffs, which involve paying more for peak energy and hopefully less during off-peak times,” explains McLeod. “Our main concern is that vulnerable and low income households may not be able to reap the benefits of this type of pricing.”
Some 26 million electricity and 22 million gas meters will need to be replaced at an estimated cost of £7 billion. This is equivalent to £15 per household for each of the 10 years from 2010 to 2020.
McLeod is concerned that consumers will end up footing the bill, as there is currently nothing in place to limit the financial risk to households or to guarantee that cost savings made by the energy companies will be passed on.
By Nick Sudbury |
