1 Consumers shouldn’t pay for the roll-out
Energy suppliers will save over £300* million a year from no-longer having to take meter readings or deal with bill disputes. Nine in ten people say that the industry should pay for the roll-out, not consumers. What’s more, British Gas’ early roll-out has shown that it is commercially viable to install smart meters without increasing bills.
2 A mandatory code of conduct for the roll-out
Energy suppliers must not be allowed to use the roll-out as an opportunity to cross-sell other products at the point of installation. Which? wants to see a code of conduct similar to the one developed for the digital switchover to make sure consumers are at the heart of the smart meter roll-out and that it is a positive experience for consumers.
3 Safeguard consumers’ energy data from abuse
Smart meters will mean more accurate bills for consumers but they could also provide suppliers with much more detailed information about people’s energy consumption. Just four in ten people (42%) trust their energy company to look after this information and the vast majority (86%) want full control of how it is used. Which? is concerned that people who opt out of giving their energy supplier full access to the details of their energy use could be penalised with a poor choice of tariffs or locked into long-term contracts.
4 Ensure suppliers provide good quality energy monitors
Energy display units will allow people to monitor their energy use and save money by cutting back on their consumption. However, there must be minimum standards for smart meters and energy monitors to ensure that everyone has access to the level of information needed change their habits and save money.
5 Educate consumers
How much money people save from smart meters depends entirely on them using the accompanying energy display unit to monitor and reduce their energy use. Therefore the Government must ensure that consumers are fully aware of how to get the most out of smart meters.
Which? chief executive, Peter Vicary-Smith, says:
“Smart meters have the potential to bring huge benefits to consumers, but only if the roll-out is managed properly.
“The Government must ensure that the roll-out is a positive experience for consumers, that it doesn’t result in higher bills, that they have full control over their data, and that every household has access to the information it needs to monitor and cut its energy use.”
According to the latest available Government figures ‘Impact assessment of a GB-wide smart meter roll out for the domestic sector’, Department for Energy and Climate Change (DECC), December 2009). Option 2- mandated roll-out of smart meters under the centralised communications model by the end of 2020, the then Government's preferred option, Annex 2 (page 44). The DECC report stated:
Each of the UK’s 25.7 million households will save £1.43 a year – a total annual saving of £36.75 million for UK consumers (Benefits to households were calculated based on 25.7 million households in the UK (Hansard 9 Mar 2009: Column 31W). This excludes any benefits based on assumed behaviour change)
The estimated minimum saving to the energy industry is £306m per annum, which will come from efficiencies including no longer having to read meters or deal with bill disputes
The roll out of smart meters will cost £8.64 billion, which the Government plans to be paid for by consumers
UK: Five ways to make the smart meter roll-out work for consumers
950 visits
Posting Date | 29 July 2010
Countries | United Kingdom
Type of News | Other news
Target Group | Local/regional/national authorities and facilitators, Building professionals, Building occupants
Editor organization URL | http://www.which.co.uk
As the UK Government prepares to publish a prospectus outlining plans for the nationwide roll-out of smart meters, Which? has outlined five key actions to ensure the roll-out will work for consumers, not just the energy industry.
Submission URL(s) | http://www.which.co.uk/about-which/press/press-releases/campaign-press-releases/...
Source Languages | English
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