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UK Government unveils national smart meter roll out plan

The UK Government has revealed more details today about its plans to roll out smart meters to all households in the country by 2020.

The roll out could follow one of three different models. The Government’s preferred option is to make energy suppliers responsible for the installation and maintenance of smart meters but create a third party to manage the communication to and from the devices.

Other options include a competitive model where energy suppliers are responsible for all aspects of smart metering and a fully centralised one where regional franchises are established to manage installation and operation of smart meters with a national body responsible for communication.

“This is a big project affecting 26 million homes, and several million businesses, so it’s important we design a system that brings best value to everyone involved,” commented Energy and Climate Change Secretary Ed Miliband.

Regardless of the smart meter system, their use could save households £2.5-3.6 billion over the next 20 years, according to figures from the Department of Energy and Climate Change. The cost of installing smart meters in every home are put at about £7 billion.

“Smart meters will empower all consumers to monitor their own energy use and make reductions in energy consumption and carbon emissions as a result,” added Miliband.

One energy supplier, first: utility, already offers all its customers a smart meter as standard. Smart metering companies are also welcoming the move.

“It would be difficult to underestimate the impact of the national roll-out programme on the energy industry and its stakeholders,” says Mark England, managing director of smart meter technology company Sentec.

“This report from DECC gives us a much clearer picture of the way the market is likely to be structured and after chomping at the bit for a number of years, market participants have now been let out of the starter gates,” he adds.

England cautions, however, that the plans must provide motivation for suppliers to change, improve or differentiate their services.

Smart meter manufacturer Landis+Gyr has also commended the plans.

“Today’s DECC announcement represents a turning point in UK energy policy. It’s been a long time in coming but the industry now has the directive and core information it needs to prepare for the work that will make the UK a worldwide pioneer of smart metering,” says CEO Stephen Cunningham.

The various options for the roll out of smart meters are now open for public consultation until 24 July.

For further information:
www.decc.gov.uk/
www.decc.gov.uk/en/content/cms/consultations/smart_metering/smart_metering.aspx
www.first-utility.com/index.htm
www.sentec.com
www.landisgyr.co.uk/

11 May 2009

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