Government to mandate smart meter roll out

The government yesterday threw its weight behind proposals for a nationwide roll out of smart meters, announcing that it would mandate that all UK households have the technology by 2020.

Smart meters are widely regarded as an effective means of curbing energy use, providing homeowners with the ability to monitor their energy usage in real time, analyse impact of specific appliances, switch suppliers with greater ease and potentially even programme appliances to turn off when not in use.

The decision was announced by energy minister Lord Hunt in Parliament, who confirmed that the 2020 target would be presented in an amendment to the Energy Bill that is to be put before the Lords next week.

"We anticipate a period of about two years to resolve the issues and to design the full detail of a domestic roll out," he said. "Our aim is then to ensure that the subsequent roll out happens over a period of 10 years – this would see delivery of smart meters by the end of 2020."

The announcement leaves the government still having to decide whether to roll out smart meters under a government-controlled programme, offer the work out to regional franchises, or require energy suppliers to install smart meters for its customers.

But it does lay to rest concerns that it would opt for a voluntary approach that energy suppliers claim would leave them struggling to make a business case for the initial investment.

Garry Felgate, chief executive of the Energy Retail Association, hailed the decision as "momentous", arguing that it would have a major impact on energy use across the UK.

"This will revolutionise how consumers use energy across Britain and the energy industry as a whole," he said. "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."

The Energy Saving Trust (EST) estimates that 153 million tonnes of carbon dioxide is emitted from UK households each year and recent trials suggest that about three per cent could be saved if smart energy meters and displays were fitted in homes.

The move could also help homeowners and businesses who want to sell power back to the grid – a constituent that is expected to grow following the government's recent announcement that it is to offer a feed-in tariff. Smart meters that allow two-way communication between suppliers and customers would allow each party to track how much energy is being fed back to the grid, making payments far easier to process.