Campaigners urge government to Look Smart for energy consumers
17th October 2007
For the first time, energywatch, the Energy Retail Association (ERA) and Utility Week have joined forces to call upon the Government to turn its promise to bring smart meters into UK homes into a detailed plan of action to deliver the goods.
At an event today in Westminster, energywatch, the ERA and Utility Week launch the Look Smart campaign. The partnership calls on the Government to act decisively and end the uncertainty around smarter metering. Government should:
- mandate the installation of smart meters in the home of every gas and electricity consumer within 10 years
- scrap its proposal to install interim devices such as electricity displays and concentrate efforts on a fast smart meter roll out
- ensure that smart meters are delivered at the least cost to consumers.
Smarter metering automatically sends energy use data to the supplier and keeps the consumer up to date with information on the energy consumption in their home.
Allan Asher, Chief Executive of energywatch said: “Three in every four complaints to energywatch are about billing and metering. Smart metering could make estimated bills and the frustration they bring, a thing of the past. By mandating the introduction of smarter metering the Government could improve the lives of millions of consumers - yet it is dithering. We still do not have a road map of when or how Britain’s consumers are going to get smart, up to date and usable information on their energy use.”
Duncan Sedgwick, Chief Executive of the Energy Retail Association commented: “Now is the golden opportunity for the Government to give us the green light to roll out smart meters across Britain. They will radically change the energy industry and put customers in the driving seat. We hope that an unambiguous mandate – to fit smart electricity and gas meters in every home within ten years – will be the conclusion of this public consultation period”.
David Taylor MP, hosting the launch event, said: “Smart meters will revolutionise the way people use energy in the home, to the significant benefit of our environment, energy suppliers and consumers. The commitment to smart metering in the Energy White Paper shows that the Government is convinced of these benefits and is working toward the speedy introduction of smart meters that the Energy Services Directive rightly demands.
"The Look Smart event is a timely opportunity for stakeholders to discuss how best to work together to, amongst other things, persuade the Government to mandate the introduction of smart meters, so that the industry can then get on with rolling out this socially and environmentally progressive technology."
The Government is consulting on the introduction of smart meters. energywatch and the ERA are urging stakeholders to support a national smart metering rollout by responding to the Department for Business, Enterprise and Regulatory Reform (BERR) consultation paper which ends on 31 October.
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Media enquiries to: energywatch on 020 7799 8486 and the Energy Retail Association on 020 7930 9175.
Notes to Editors
- You or a representative is invited to attend the launch of Look Smart at a reception on 17 October 2007 in the Attleee Suite at Portcullis House, Bridge Street, Westminster between 4.30 -5.30 pm. The event is hosted by David Taylor MP.
- David Taylor MP, Allan Asher, Chief Executive of energywatch, Duncan Sedgwick, Chief Executive of the Energy Retail Association and Steve Hobson, Editor of Utility Week will be available for interviews during Wednesday 17th October. Pre-records can be arranged.
- The Department for Business, Enterprise and Regulatory Reform (BERR) consultation paper “Energy billing and metering: Changing Consumer Behaviour” closes on 31 October 2007.
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
- 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
- What are the benefits of smart meters?
Among the benefits of smart meters to consumers are:
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 current 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.
- The Energy White Paper 2007: Meeting the Energy Challenge, gives no start date for the introduction of smart meters. However, it envisages that within the next 10 years all domestic energy customers will have smart meters with visual displays of real-time information that allow communication between the meter, the energy supplier and the customer and provide accessible information about their energy usage. Chapter 2, Section 2.64.
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