Fresh concerns surface for smart metering plan

Domestic adoption of smart energy meters will only become a reality if the government makes their use a legal requirement, analyst Datamonitor is warning.

Smart metering was proposed in last year’s Energy Review (Computing, 20 July) as a way of cutting consumption by providing real-time, accurate meter readings.

But while administration cost savings are appealing, there are significant costs associated with the installation of the devices.

Elective implementation of automated meter reading by energy companies is unlikely because there is not a cast-iron investment case, says Datamonitor consultant David Hiller.

‘If energy regulator Ofgem made accurate monthly billing a legal requirement UK energy companies would surely react by installing smart meters,’ he said.

Ofgem does not believe that the government should mandate smart metering.

‘We think the market should decide in consultation with customers because the variety of smart meters raises the question: which meters would you mandate anyway?’ said a spokesman.

Ofgem is administering a £9.75m grant from Defra and the DTI to selected suppliers that will be announced in the spring.

‘A smart meter does not automatically mean people will consume less, so the trial is also about customer behaviour,’ said a spokesman.

UK energy firm Npower is to test the meters this year.

‘The benefits of smart metering lie in the two-way communication that supports reading on request, remote updates on tariffs and payment details as well as diagnostics and messaging,’ said metering commercial manager Jane Franklin.

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Further reading:

Smart meters pick up pace