Smart meters save just £23

So-called smart meters, digital devices which will be installed in all households and businesses, are designed to end unreliable estimated gas and electricity bills and stop the need for companies to send out meter inspectors. Instead, information about how much energy consumers have used will be sent electronically to their suppliers.

However, documents published by the Department for Energy and Climate Change (Decc) have confirmed that households will have to pay for the £11.3 billion roll out, and that they will only save £23 a year by 2020.

That saving equates to just 2 per cent of the current average household energy bill of £1,132 and does not take into account forecasts that gas and electricity bills will climb substantially over the next decade. Ofgem, the industry regulator, has predicted that bills are likely to rise by between £168 and £700 a year by 2016 because of the need by the energy companies to invest vast sums in new power stations.
Various green measures are likely to increase household bills even further. Tom Lyon, energy expert at uSwitch.com, the price comparison site, said:“The average household energy bill is already £1,132 a year with £84 of that made up by hidden taxes. Policies launched under the previous Government are expected to add a further 6 per cent or £72 in levies over the next decade – this means that the hidden taxes on our energy bills will add up to £156 a year, far outweighing the potential £23 net saving offered through smart metering.”

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