Industry welcomes Government backing for smart meters, 30 April 2008

- Government report signals support for smart meters
- Energy Bill’s Report and Third Reading in the House of Commons
- Majority of Britons want accurate billing made possible by smart meters

The Energy Retail Association (ERA) has highlighted today (Wednesday 30 April) as a crucial step towards the introduction of smart meters in every home in Britain. The final stages of the Energy Bill in the House of Commons coincides with the publication of the Government's long awaited report into billing and metering. This report accepts the industry view that smart meters and not electricity display devices are the biggest prize in revolutionising Britain's energy industry. During the third reading MPs will also debate an amendment that that brings smart metering closer to fruition.

Last week the ERA welcomed the Government's backing for new metering technology and its decision to consult on the impact of a national roll-out of smart meters rather than the lesser prize of electricity display devices.

Smart energy meters are the big prize as they allow two-way communication between electricity and gas meters and energy suppliers. They represent a far greater benefit to consumers than electricity display devices, which will only show units of electricity used and will not show gas consumption or an accurate reading of the cost of the energy used. Only smart meters will enable energy suppliers to provide customers with accurate billing and replace the expensive and inefficient system of estimated billing and meter reading currently in use.

New research announced today by the ERA shows that the vast majority (82 per cent) of people in Britain want to see an end to estimated energy billing. The YouGov survey shows that young people (aged 25 to 34) are the least happy with outdated billing and metering technology and are the most interested in having access to accurate bills that new smart metering technology will make possible.
The recent YouGov survey shows that the public are keen to take advantage of the technology, which allows two-way communication between energy supplier and consumer.

Of more than 1,950 people surveyed in Great Britain, 45 per cent are unsatisfied with this system of billing. It is among the next generation of young adults that dissatisfaction is the strongest with almost half (48 per cent) of 25 to 34 year olds being unhappy with the current system of billing.

The vast majority of people recognise the appeal of smart meters with over four fifths (82 per cent) of those people questioned being in favour of the new technology. Yet it is young adults who appreciate this benefit the most with 85 per cent of 25 to 34 year olds acknowledging the appeal that new smart meter technology will offer.

Smart meters will reward consumers for conserving energy by displaying information in real time on the energy used, the cost of this energy and their carbon impact on the environment. This real time data could potentially be displayed on a handheld mobile device, online or even via mobile phone, as it is shared instantly with the energy supplier.

The ERA believes that smart meters are the next generation of electricity and gas meters. Duncan Sedgwick, Chief Executive of the ERA, said:

“It is encouraging to see that the Government has listened to the concerns of both the industry and consumer groups and tabled an amendment to the Energy Bill that has effectively opened the door for smart metering. The Government's backing for smart meters rather than the lesser prize of electricity display devices will also be vital in keeping costs low for consumers and providing customers with what they really want – accurate billing.

“Our research shows that estimated billing is unpopular and that most people would welcome the chance to know exactly how much energy they are using.

“The Government must now give industry a mandate and a clear timetable for the roll out of smart meters and we will work closely with them to ensure this is delivered.”

- Ends -

Notes to editors:
• 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+)

• 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 BERR (Department for Business, Enterprise and Regulatory Reform) website: http://www.berr.gov.uk/energy/whitepaper/page39534.html.

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

                                                                                                                               
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