Smart metering closer to reality

Ed Miliband has outlined plans to replace all 47 million meters in Britain with new 'smart' meters for electricity and gas within 10 years.

All homes will have smart meters installed by 2020, under proposals put forward by the energy and climate change secretary.

Miliband hailed the consultation, launched today, as a step towards making Britain the first country in the world to have an overhaul of this size for gas and electricity.

Under the proposals, energy suppliers will be able to offer a greater range of tariffs to households, including a 'time of use' tariff to encourage more efficient energy use.

The scheme will affect 26 million homes, and several million businesses, the energy secretary stated.

The new meters are designed to enable readings to be taken remotely and to give consumers real-time information on their energy usage.

Suppliers could also be given the option to offer cheaper off-peak energy in an effort to encourage more efficient use of electricity and gas.

"This is another part of our great British refurb," Miliband explained.

"The meters most of us have in our homes were designed for a different age, before climate change. Now we need to get smarter with our energy.

"Smart meters will empower all consumers to monitor their own energy use and make reductions in energy consumption and carbon emissions as a result. Smart meters will also mean the end of inaccurate bills and estimated meter readings."

Miliband later told GMTV: "It basically does away with estimated readings so the companies will know how much you're using so you won't get that frustrating thing of overpaying on your bills.

"You will be told how much gas and electricity you're using and how much it is costing you.

"The experiments so far have shown that can save people a lot of money because they become much more conscious about how much gas and electricity they are using but also what are the times of day when it costs more, what are the times of day when it costs less."

British Gas, a leading energy supplier supporting the scheme, said that the project, if successful, could cut carbon emissions and save money for consumers.

Phil Bentley, the firm's managing director, said: "At British Gas, we have the largest smart meter trial in the country, and we know this technology has helped put our customers back in control of their energy usage, helping them use less energy, cut carbon emissions and save money.

"Smart meters will also ensure our homes are as energy efficient as possible, and they will open the gateway to new technologies for renewable electricity generation in the home - and the 'smart grid' of the future."

But shadow energy secretary Greg Clark said that ministers still had not made up their minds on how the smart metering technology would work.

He welcomed the government's consultation but argued that their timetable was "frustratingly slow".

"In other countries around the world, smart meters are already being rolled out now, resulting in savings of up to 15 per cent on energy bills and reduced CO2 emissions," Clark said.

"Labour ministers have been talking about smart metering for years, yet they still haven't made up their minds on how this technology is to be deployed in the UK."

The Department of Energy and Climate Change's consultation on smart metering will run until July 26.