The government is this week set to give a green light to the biggest shake-up in Britain’s energy industry for over 30 years: the £9 billion rollout of 47 million new gas and electricity meters in every British household.
Details of the rollout of so-called smart meters, which monitor energy consumption in real-time, are expected as early as Wednesday.
The phase-out of traditional meters represents the biggest single change in the sector since the 1970s introduction of North Sea gas and is set to trigger thousands of job losses for meter readers, engineers, call centre staff and middle managers. But the new meters will enable power companies to make big strides on energy efficiency by introducing off-peak deals similar to those offered by telephone operators.
Consumers will be rewarded for using energy-hungry appliances such as dishwashers and tumble dryers at off-peak times, such as between 1am and 5am, allowing for a reduction in the total number of power stations needed to power the UK.
Inaccurate billing will also end because suppliers would receive exact data.
Finlay MacDonald, manager of the smart metering programme at ScottishPower said:
"The new meter technology will streamline a lot of our internal procedures, helping to improving account handling and turnaround times for processes like a change of tenancy or a change of supplier. Fundamentally, they will make it easier for our customers to do business with us."
The announcement is expected this week from Baron Hunt of Kings Heath, minister of state at the Department of Energy and Climate Change.
There has been disagreement over the cost of the rollout, which will start next year and last as long as 10 years.
DECC has said that the project could be completed at a cost of between £7 billion to £9 billion, or an average of £269 to £346 per household.
Ernst & Young, the audit firm, has rejected that estimate, arguing that the true cost would be at least 49 per cent higher, at about £13.4 billion, or £515 per household.
Consumers are expected to shoulder the bulk of the extra cost in the form of higher bills, although the industry claims there will be offsetting savings.
In an interview last week with The Times, Sam Laidlaw, chief executive of Centrica, the owner of British Gas, claimed consumers would not pay anything extra for the meters because they would allow them to cut their overall energy use.
To help to oversee the project, which could start next year, the Government has approved the creation of a body to manage the meters and the relaying of information to energy suppliers.
The project will be highly lucrative for the manufacturers of smart meters, such as General Electric, IBM and Itron, of the United States, and Landis+Gyr, a privately owned Swiss group.
Scottish Power’s Mr MacDonald said: “We support the commitment made by the Government to roll-out of smart meters across every home and business in Britain by the end of 2020. There is no doubt that smart electricity and gas meters will have a major positive impact on all of our energy habits and consumption, not only helping to reduce bills, but also cutting overall carbon emissions.”
“Smart electricity and gas meters are being designed with consumers' interests at heart. They will provide precise real time information on energy consumption, enabling customers to better manage their energy use. Energy companies will also be able to design specifically tailored tariffs that will benefit their customers. Smart meters will also mean the end of estimated bills and manual meter readings, so there will never be any doubt about the cost of energy.”
The phase-out of traditional meters represents the biggest single change in the sector since the 1970s introduction of North Sea gas and is set to trigger thousands of job losses for meter readers, engineers, call centre staff and middle managers. But the new meters will enable power companies to make big strides on energy efficiency by introducing off-peak deals similar to those offered by telephone operators.
Consumers will be rewarded for using energy-hungry appliances such as dishwashers and tumble dryers at off-peak times, such as between 1am and 5am, allowing for a reduction in the total number of power stations needed to power the UK.
Inaccurate billing will also end because suppliers would receive exact data.
Finlay MacDonald, manager of the smart metering programme at ScottishPower said:
"The new meter technology will streamline a lot of our internal procedures, helping to improving account handling and turnaround times for processes like a change of tenancy or a change of supplier. Fundamentally, they will make it easier for our customers to do business with us."
The announcement is expected this week from Baron Hunt of Kings Heath, minister of state at the Department of Energy and Climate Change.
There has been disagreement over the cost of the rollout, which will start next year and last as long as 10 years.
DECC has said that the project could be completed at a cost of between £7 billion to £9 billion, or an average of £269 to £346 per household.
Ernst & Young, the audit firm, has rejected that estimate, arguing that the true cost would be at least 49 per cent higher, at about £13.4 billion, or £515 per household.
Consumers are expected to shoulder the bulk of the extra cost in the form of higher bills, although the industry claims there will be offsetting savings.
In an interview last week with The Times, Sam Laidlaw, chief executive of Centrica, the owner of British Gas, claimed consumers would not pay anything extra for the meters because they would allow them to cut their overall energy use.
To help to oversee the project, which could start next year, the Government has approved the creation of a body to manage the meters and the relaying of information to energy suppliers.
The project will be highly lucrative for the manufacturers of smart meters, such as General Electric, IBM and Itron, of the United States, and Landis+Gyr, a privately owned Swiss group.
Scottish Power’s Mr MacDonald said: “We support the commitment made by the Government to roll-out of smart meters across every home and business in Britain by the end of 2020. There is no doubt that smart electricity and gas meters will have a major positive impact on all of our energy habits and consumption, not only helping to reduce bills, but also cutting overall carbon emissions.”
“Smart electricity and gas meters are being designed with consumers' interests at heart. They will provide precise real time information on energy consumption, enabling customers to better manage their energy use. Energy companies will also be able to design specifically tailored tariffs that will benefit their customers. Smart meters will also mean the end of estimated bills and manual meter readings, so there will never be any doubt about the cost of energy.”
Source: The Times
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