![3D"energy](3D"mhtml:file://\\sbs2003\Users\Campaigns\Smart) =20
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Smart=20
Comment is a newsletter produced by the Energy Retail =
Association=20
(ERA) providing up-to-date information on the campaign for =
the=20
roll-out of smart meters to every home in Britain.
The ERA is =
calling on the=20
Government to provide a mandate to the energy retail =
industry to=20
roll out gas and electricity smart meters to all 25 million =
British=20
households. It's a change that would end estimated billing =
and put=20
consumers in full control of their domestic energy use. For =
more=20
information go to our website:
http://www.energy-r=
etail.org.uk/smartmeters/ |
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In=20
this issue:
- ERA=20
welcomes recent government announcements, but action is =
still=20
required=20
- Smart=20
metering: assessing the impact=20
- Next=20
steps to smart metering=20
- Taking=20
action on smart metering=20
- Smart=20
meter endorsements=20
- What=20
is the Energy Retail Association?=20
- Contact=20
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ERA=20
welcomes recent government
announcements, but =
action
is still=20
required
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The=20
key benefits of smart meters to British consumers are: =
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The=20
ERA welcomed the Government amendments to the Energy Bill =
tabled on=20
24 April 2008 (New Clauses 8-10). These amendments provide =
enabling=20
powers for a universal domestic smart meter mandate to be =
brought=20
forward at a later time, and set out the need to consult =
before=20
these powers are enacted.
The Government has also =
announced=20
that there will be no mandated roll-out of free electricity =
display=20
devices (EDDs) with replacement meters and to consumers who =
request=20
them. This is an important step forward as these devices are =
a=20
distraction from the bigger goal of smart =
meters.
Whilst the=20
Government's changes are welcome there is still no guarantee =
that=20
smart meters will be delivered. Government now needs to =
demonstrate=20
it is serious about the smart meter roll-out by setting out =
a clear=20
timetable for its implementation across 25 million homes in =
Britain.=20
The Government is now committed to completing an =
impact=20
assessment on the deliverability of smart meters. Given the =
enormous=20
financial and staff costs involved in a smart meter =
roll-out, the=20
industry is calling on the Government to set out a clear =
timetable=20
for the completion of this impact assessment, and a deadline =
for a=20
decision to be made. |
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Accurate, up-to-date =
information on=20
the energy they are using=20
Facilitate the creation=20
of
flexible tariffs=20
Automatic meter readings =
that end=20
estimated bills=20
The same electricity and =
gas meter=20
for everyone=20
Removing the additional =
cost to=20
service pre-payment meters=20
Enabling consumers to =
sell energy=20
back to the supplier, facilitating microgeneration=20
A positive impact on fuel =
poverty=20
and carbon emissions=20
Better forecasting of =
energy demand=20
at different times of the day |
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Smart=20
metering: assessing the impact
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In=20
order to provide the required mandate for a smart meter =
roll-out the=20
Department for Business Enterprise and Regulatory Reform =
(BERR) must=20
satisfy itself that the proposed implementation arrangements =
represent the most cost effective approach for consumers and =
the=20
British economy. Such an outcome must be demonstrated in a =
detailed=20
impact assessment (IA) currently being prepared by =
officials. The=20
draft version published by BERR on 22nd April 2008 appears =
to=20
contain significant inaccuracies which could undermine the =
immediate=20
prospects for the delivery of smart metering. These include=20
significant over-costing of the meters themselves and of the =
communications platforms required to support them, compared =
to=20
industry estimates. Conversely, the assessment appears to=20
underestimate both the consumer benefits and potential =
carbon=20
savings from smart metering with an overly cautious =
'optimism bias'=20
further depressing the overall cost benefit =
analysis.
These=20
factors leave Government estimates of the cost of the =
roll-out at a=20
significantly inflated total of =C2=A314bn against industry =
projections=20
of a maximum of =C2=A38bn. The industry wishes to emphasise =
that it is=20
not seeking any Government funding for this project, and is=20
committed to working with BERR to ensure that the IA =
reflects more=20
accurate cost assumptions when the final version is =
published later=20
in the year. For more information please visit
http://www.energy-retail.org.uk/smartmeters.html
<=
BR>The=20
timing of the final IA has been planned to allow early =
reports from=20
the Ofgem trials on smart metering to be considered in any=20
recommendations. However, this early, incomplete data should =
only be=20
considered as an indicative contribution to customer =
response=20
results, as it is unlikely to be statistically robust at =
this stage.=20
The ERA believes that the manifest advantages of tackling =
climate=20
change, reducing domestic energy use and tackling full =
poverty are=20
already sufficiently robust to justify mandating smart =
meters and=20
setting a timetable for their roll-out now. |
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=20
Michael Connarty MP attending
a smart =
meter=20
exhibition |
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Next=20
steps to smart metering
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There=20
are a number of important processes still to be negotiated =
before a=20
roll-out of smart meters can be guaranteed. The key =
remaining=20
legislative and regulatory milestones (with estimated dates) =
are:
- Energy Bill Lords 2nd =
reading,=20
committee stage,
report and 3rd reading (21st May-July =
2008)=20
- Energy Bill House of =
Commons=20
remaining stages
(October 08)=20
- Ofgem smart meter trials =
report on=20
initial findings (November 08)=20
- BERR publication of full =
Impact=20
Assessment
(expected December 08)=20
- BERR decision on smart =
meter=20
mandate
(expected December 08) The ERA will =
be=20
providing detailed analysis of the prospects for smart =
metering as=20
each of these milestones is reached. |
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A prototype smart meter display =
device |
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Taking=20
action on smart metering
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The=20
ERA is working with a number of NGOs and consumer groups in =
the Look=20
Smart campaign, which call on Government to give a clear =
deadline=20
for: a) the completion of the BERR smart metering impact =
assessment=20
and b) a decision to proceed with the roll-out of domestic =
smart=20
meters. Our aim is for the Government to grant a mandate to =
the=20
industry for a 10 year roll-out based upon a regional =
franchise=20
model.
The ERA can provide background briefing =
material to=20
support any intervention which might assist in making the =
case to=20
Government for these changes including:
- Writing=20
to energy minister Malcolm Wicks MP, and the Government =
spokesman=20
in the House of Lords, Lord Jones of Birmingham=20
- Raising=20
the urgent need for smart metering in parliamentary =
debates on the=20
Energy Bill or during debates on fuel poverty, climate =
change and=20
sustainability issues more generally =
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Smart=20
Meter endorsements
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"[In]=20
every household over the next decade there will be the offer =
of a=20
smart meter that will allow two-way communication between =
the=20
supplier and customer, giving more accurate bills of course =
and=20
making it easier for people to generate their own energy =
through=20
microgeneration and sell it on to the grid."
- Gordon=20
Brown, Prime Minister (November 2007)
"[Smart =
meters]=20
will not be in every home without a clear Government =
directive for=20
their installation within ten years. The Government now =
needs to=20
turn its expectation of smart meters into a reality." =
- Allan=20
Asher, Chief Executive of energywatch
"We are =
calling=20
on the Government to give a clear mandate to the energy =
supply=20
industry to roll out smart meters across Great Britain to =
put=20
consumers in full control of their gas and electricity use." =
- Jill=20
Johnstone, Director of Policy at the National Consumer=20
Council |
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What is=20
the Energy Retail Association?
The Energy Retail=20
Association (ERA), formed in 2003, represents electricity =
and gas=20
suppliers in the domestic market in Britain. The ERA works =
closely=20
with Government, charities and other organisations in =
England,=20
Scotland and Wales to ensure a coordinated approach to =
dealing with=20
the key issues affecting our industry and British consumers. =
All the=20
main energy suppliers operating in the residential market in =
Britain=20
are members of the association - British Gas, EDF Energy, =
npower,=20
E.on, Scottish Power, and Scottish and Southern Energy. =
Contact
For=20
more details on smart meters, or to arrange a briefing =
meeting,=20
please contact:
Madeleine Hallward, Public Affairs =
Manager at the=20
Energy Retail Association.
T: 020 7747 5435; E: madeleine.hallwar=
d@energy-retail.org.uk
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What are=20
smart meters?
http://www.energy-retail.org.uk/smartmeters.html
<=
BR>What are=20
electricity display devices?
h=
ttp://www.energy-retail.org.uk/ElectricityDisplayDevices.html
Smart=20
meter animation
http://www.energy-retail.org.uk/SmartMetersAnimation.html=
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<=
BR> |
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This=20
e-mail is only intended for the people or organisation to =
which it=20
is addressed and may contain confidential or privileged =
material.=20
Unless you are the person or organisation that this e-mail =
is=20
intended for, we ask that you do not review, retransmit, =
disseminate=20
or otherwise use or take action in reliance on the =
information in=20
this e-mail. If you received this e-mail in error, please =
delete the=20
material from any=20
computer. |