Thrifty Britons keen to make Smart savings, 21 May 2008

• 96 per cent of Britons want to be more energy efficient to save money
• 70 per cent believe new smart meter technology’s real-time cash displays of energy used would reduce their consumption
• 79 per cent believe it is important that smart meters remove many of the costs of providing pre-pay meters

With the cost of living rising, Britons are keener than ever to be energy efficient, according to a YouGov poll carried out for the Energy Retail Association (ERA). The research shows that 96 per cent of people think it’s important to be more energy efficient to reduce the size of their energy bills. In addition, 70% believed that new smart metering technology, which allows energy customers to see how much they are spending in real time, would help them reduce consumption.

Smart meters will rid consumers of the uncertainty of estimated bills and enable them to conserve energy, by allowing both gas and electricity consumption to be tracked in real time. Information on consumption is then shared automatically with the energy company and will be available to the customer on a dedicated hand-held display, and possibly also on their computer or mobile phone.

Smart meters will also allow people who generate their own electricity at home from such sustainable sources as wind and solar energy – known as microgeneration – to sell it back to the national grid. This would reduce energy bills further, while also helping the environment. Three out of four (75 per cent) of the people surveyed found the concept of microgeneration appealing.

The ERA believes that smart meters are the next generation of electricity and gas meters. They are calling on the government to mandate their roll-out to every home in the country.

Duncan Sedgwick, chief executive of the ERA, said:

"Consumers are feeling the pinch in many areas at present and so saving energy is more important than ever. It is clear that the public want to save energy and be more energy efficient but they don't yet have the tools to do this.

"Both consumers and the industry believe that smart meters will make a big difference in helping people to change their behaviour and use less energy. Now it's up to government to set a clear timetable and give industry a mandate to install them in every British home."

Cassie Higgs, Senior Policy Advocate, National Consumer Council (NCC) welcomes the opportunity smart meters offer for saving money:

“Smart meters give consumers clear information and greater control over their energy use, helping us all to consume energy more responsibly. Also, by providing suppliers with accurate energy readings, they would make estimated bills, which are a major consumer gripe, a thing of the past”.

79 per cent believe it is important that the introduction of smart meter technology will eliminate many of the costs of providing a pre-pay meter and more tariff options will be available to these customers. Moreover, 73 per cent would be interested in these new energy tariffs. Customers are expected to be able to choose a tariff with varying prices for energy depending on what time of day the energy is use – allowing cheaper energy during off-peak periods. Older people were most enthusiastic about the benefits the new technology will bring, particularly on the issue of new tariffs. 35-44 year-olds were also overwhelmingly in favour of variable tariffs, with 77% expressing an interest in them.

70 per cent of consumers believe that it is important to be able to switch instantly between pay monthly and pay as you go tariffs for buying electricity and gas, just as they can with mobile phones. This was most appealing to 25 to 34 year-olds with 75 per cent seeing the importance of this flexibility, compared with 68 per cent of over 55s.

- Ends -

For further information, please contact:

Claire Gibson - Press Officer for the Energy Retail Association on 020 7747 5432

Notes to editors

• The Energy Retail Association (ERA), formed in 2003, represents the major electricity and gas suppliers in the domestic market in Great Britain. All the main energy suppliers operating in the residential market in Great Britain are members of the association - British Gas, EDF Energy, E.ON, npower, Scottish Power, and Scottish and Southern Energy.

• The Energy White Paper, published in May 2007, supported the ERA's view that Smart Meters could be rolled out to 25 million homes for gas and electricity within 10 years. More information on the ERA’s work on smart meters can be found on our website at http://www.energy-retail.org.uk/smartmeters.html. The Energy White Paper can be downloaded from the DBERR website: http://www.berr.gov.uk/energy/whitepaper/page39534.html.

• The Energy Consultation Response can be downloaded from DBEER website: http://www.dti.gov.uk/energy/review/implementation/billing-metering/cons-responses/page37482.html

• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,961 adults. Fieldwork was undertaken between 18th and 20th December 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

• Further information on Smart Meters is available from the ERA website: http://www.energy-retail.org.uk/smartmeters.html

                                                                                                                               
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