Energy Bill ushers in smart meters

Energy suppliers have welcomed what they call a "momentous decision" on the roll out of smart meters throughout the UK.

The Energy Retail Association (ERA), which represents the six major UK domestic energy suppliers, has applauded the government decision to mandate smart meters for gas and electricity in every home by 2020.

Lord Hunt of Kings Heath made the announcement during the report stage of the Energy Bill late yesterday. "I am pleased to announce that the government has taken the decision to mandate smart meters for all households," he said.

"This is a major step forward; no other country in the world has moved to an electricity and gas smart meter rollout on this scale. The existing powers in the Energy Bill will enable the Government to proceed with a domestic roll-out."

Garry Felgate, ERA chief executive, said: "This is a momentous decision for households across Britain. We're delighted the government has decided to forge ahead with the roll out of smart meters. It is vital that no time is wasted in implementing this decision and that the government provides the necessary parliamentary time to debate the detailed plans."

Recent trials have suggested that smart meters could help the UK reduce carbon emissions by around three per cent of the 153 million tonnes of carbon dioxide the Energy Saving Trust (EST) estimates are emitted from UK households each year if smart energy meters and displays were fitted in homes.

And recent ERA research found 70 per cent of energy customers believed new smart metering technology would help them reduce their energy consumption.

But the detailed rollout plans yet to be finalised include who will foot the bill for the new technology and the exact specification of the meters to be installed.

In last night's debate, Baroness Wilcox said: "They [the government] are still talking about if' and maybe' when the questions that need to be answered are when' and how'."

In his response, Lord Hunt revealed that before the government takes its final decision on the detail of the rollout mandate, including meter functionality, it will need to complete its impact assessment analysis.

"I understand [the analysis] will be ready by the end of the year, when I hope we will have more up-to-date figures in relation to the costs and benefits," he added.

Alex Kwiatkowski, Datamonitor analyst, told IT PRO: "It's encouraging to see the widespread implementation of smart meters move one stage closer, but it's important to remember there's a long way to go before we see them in every home and commercial premises in the UK. However, this is certainly a step in the right direction."