Government accelerates smart meter rollout plan

Smart meters will enable consumers to view their energy consumption in real time

The Department of Energy and Climate Change (DECC) and energy regulator Ofgem today launched a consultation on the faster roll-out of smart domestic energy metering.

The bodies released a prospectus outlining the government’s plans to roll out smart meters to every household in the UK.

This rollout aims to provide efficiency and interoperability by simplifying and improving industry processes, including changing suppliers, as well as enabling smart grid development.

A key part of the proposal is that consumers will be able to view their own information on a display on the meter, which could even provide a live view of the energy costs of the household.

The plan also allows suppliers to read and manage meters remotely, removing the need for a home visit, thus reducing costs.

The prospectus states that "the rollout of smart meters will play an important role in Britain’s transition to a low-carbon economy and help us meet some of the long-term challenges we face in ensuring an affordable, secure and sustainable energy supply."

The DECC and Ofgem predict that the proposed early rollout will bring benefits of £17.8bn over the next 20 years. They expect these benefits to derive from reductions in energy consumption and cost savings in industry processes.

Data privacy is high on the agenda, with consumers expected to be able to choose who is able to view their energy consumption records. A Privacy and Security Advisory Group has also been set up.

The meters will be capable of taking consumption readings every 30 minutes. The proposal is that this data will be held in the meter for a year.

Rick Hanks, smart meters lead at Accenture, said: “Data management and real-time analytics will play a central role in the success of smart meters. The immediacy of the insight provided by analytics will enable utilities to digest what the consumer needs and then align their services accordingly."

The rollout will see the introduction of new equipment into customer premises, including:

• Gas and electricity meters with smart functionality

• An in-home display (IHD) for domestic customers

• A wide area network (WAN) communications module to connect to the central communications provider

• A home area network (HAN) to link meters in customer premises, the communications module and the IHD – and potentially other consumer devices, such as microgeneration and load control devices

This data can be communicated through the WAN to a proposed central data and communications entity (DCC), which may then provide the data to authorised third parties.

This set-up is designed to provide a two-way communications channel between smart meters and a central communications hub to which smart meter data users (suppliers, network companies and other authorised third parties) will have access.

DCC trialling and testing should be completed by August 2013, at which point it will become obligatory for domestic customers. This means that the rollout is likely to complete significantly earlier than 2020, as per the original plan, although the prospectus did not state a definitive completion date.