Sunday 23 November 2008

Smart meters: are they the answer to big bills?

With energy bills at a record high, millions of Britons may be worrying about how they are going to pay to heat and power their homes this winter. Cutting back on energy use is one way to limit the financial damage of wintertime, but so few of us know where to start. This is where the new generation of "smart meters" can come in.

A smart meter is a small wireless transmitter that receives signals from your gas and electricity meter about your energy use. This information is then forwarded to a portable display that can be prominently placed in the home, which can be read by the customer. The idea is that if you can clearly and easily see how much energy you are using and how much it is costing then it should prompt a change of behaviour. In other words, customers will become more energy-conscious and this in turn will see them take steps to reduce their power bills. "Smart meters will help people understand energy better. Standard meters were hidden away in a cupboard not telling you much, but smart meters can show you how much you are saving by turning down the thermostat in an instant. In addition, smart meters make deals more transparent – if you can see your pattern of energy use, you can see what tariff suits your needs," said Marian Spain, director of strategy at the Energy Saving Trust.

A one-off £49 installation fee is charged, but savings soon start to be made.

The Energy Saving Trust reckons that the gadget can help knock 5 per cent off the average household energy bill. That equates to an annual savings of between £50 and £70. The theory is that those who use a smart meter would be more inclined to make energy saving decisions such as insulating their lofts, turning down their thermostats and switching appliances off rather than leaving them on standby. The meters can also help reduce inaccurate billing – a big bugbear among consumers. This is because, since the meters can be read remotely by providers, bill accuracy is assured.

full article

No comments: