British Gas moves towards smart meter data model

British Gas has launched a service that will allow customers to submit a monthly meter reading online or by text instead of paying quarterly estimated bills.

The EnergySmart initiative is the first move by an energy company away from the traditional model of quarterly bill estimation towards a more accurate measure of consumption.

Customers who sign up for the scheme will be offered a free electricity cost monitor.

The device is similar to a smart meter in that it reads electricity more accurately but different in that the customer must read the information and send it to British Gas themselves, whereas smart meters would do this automatically – and on a much more regular basis.

The government has mandated a national smart meter rollout by 2020.

Smart Meters will require energy firms to collect and analyse much more data about their customers, and the British Gas initiative is partly designed to see how well the firm handles a greater flow of information.

Customers will also be offered an online consumption history to help them monitor energy use, a predictive spend calculator to help with budgeting, email and text reminders to support monthly meter readings, and a loyalty bonus of £40 if they use the service for a year.

British Gas says trials have shown that customers can save £110 each year as a result of seeing the real-time information on their monitor, changing their behaviour, and cutting energy use.

Phil Bentley, managing director of British Gas, said the firm's customers had been pushing for a move away from quarterly bills.

"We’ve listened to them, and our response is the new EnergySmart service, which will put an end to quarterly estimated bills, help customers control the amount of energy they use – and their monthly budgets," he said.