Concerns over energy smart meters
Two reports highlight questions about the cost of the £11.7 billion project to install smart meters in every home by 2019 - costs that will be passed on to us.
A Government committee has expressed concerns over energy smart meters, which are due to be installed in all British homes and small businesses by 2019.
The Public Accounts Committee has published a report into the £11.7 billion project that questions whether we will actually benefit from the installations.
The idea behind smart meters is a good one – they will accurately record our gas and/or electricity consumption, meaning the days of the estimated bill will be over.
The cost of installing them will be passed on through our energy bills. But the Public Accounts Committee said that “many of the benefits accrue in the first instance to energy suppliers”, in that they can cut the cost of meter readers and customer service staff.
It also raised concerns about the competitiveness of the energy market and how energy companies will be held accountable for passing on the benefits to customers.
The installation of the smart meters will begin in 2014. The benefits of the scheme, including reduced energy bills through more accurate billing, are forecast to be £7.1 billion higher than the cost of the installation.
Which? wants review
However, Which? is calling for the scheme to be reviewed again, saying the Government doesn’t have full control of the installation costs.
A report commissioned for Which? by the Centre for Sustainable Energy warned that relying on competition among energy suppliers to reduce the costs of installation was a big risk. Both this report and the Public Accounts Committee pointed to the current disenchantment with the big energy companies.
The report also recommends that smart metering costs are separated on bills and tariff quotes so customers can see how the cost compares.
It wants fines and compensation payments to be imposed if companies breach data protection laws and don’t pass on the benefits of the technology.
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