Smart meters get go ahead
Energy suppliers have been given the responsibility for the £8bn scheme to install a smart meter in every home by 2020.
The Department for Energy and Climate Change (DECC) announced this week that utilities will be expected to install 47 million meters in 26 million properties. The anticipated saving for each householder will be £28 a year from improved awareness of energy consumption.
It will cost around £340 per household to install the meters and it is expected that energy suppliers will recoup this expense through higher bills. Energy firms will also make substantial savings from improved monitoring of usage and the end of 'physical' meter readings.
Energy and Climate Change Minister Lord Hunt admitted that the annual saving for domestic consumers was modest compared to the current average annual bill of more than £800 for gas and £445 for electricity. However, the DECC said some people would reduce their bills by closer to £100 a year as the meters can encourage changes in behaviour.
"Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills," said Lord Hunt.