Energy industry says meter plan is too low-tech

A plan to roll out smart meters that could provide almost £4.5bn of benefits to Britain by cutting domestic energy bills and lowering CO2 emissions, is in danger of being undermined by government policies, British Gas and consumer groups warned last night.

Ministers have proposed rushing in far more limited electricity display devices in May next year. But the energy industry says this would be a waste of money and would hamper the introduction of hi-tech devices that would save far more cash and carbon.

The industry also claims that using interim meters would delay the full introduction of smart devices by up to 20 years and deliver benefits of not much more than £2.5bn.

Sam Laidlaw, chief executive of Centrica, the parent group of British Gas, said: "Speed is vital and if the government gives us the green light now, the UK's 45m dumb meters can be replaced [by smart meters] within seven years, starting from 2010. Key to this would be a restructuring of the metering industry, with regional franchises delivering roll out street by street.

"The rapid roll out of smart meters to all households is a real opportunity to revolutionise the industry, giving the UK billions of pounds of benefits through reduced energy usage, lower CO2 emissions and better customer service."

British Gas says that, based on the experience of rolling out 63,000 smart meters in Holland to some of its 800,000 customers, it should be able to reduce energy consumption in homes by 2%.

Smart meters, capable of displaying consumption costs and of being read remotely, would be placed on kitchen tables or on shelves to allow consumers to closely monitor their gas and electricity usage and encouraging them to switch on power less often or outside peak hours. The smart meters could provide instant readings on carbon and be connected to energy company offices, ending the need for meter readers and estimated bills.

Energywatch, the consumer group, said it supported the drive for smart meters and shared the industry's concerns about the government's "unnecessary" proposed use of low-tech display units. A government spokesman said it was committed to the roll-out of smart meters. But this would take up to 10 years. "That is why we have consulted on proposals to introduce real time display units, which offer a cost-effective way of delivering energy savings now."

Terry Macalister

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