Government unveils smart meter plans
The government has unveiled its plans for smart meters, which will end estimated energy bill readings and help consumers save money on their gas and electricity.
All homes in Britain will have a smart meter installed by 2020, the government said.
Under the plans, households will be able to see in real time how much energy they are using, while suppliers will be able to read meters remotely - so saving money on the costly teams of meter readers sent out across the nation.
Energy and climate change secretary, Ed Miliband, said: "Smart meters will empower all consumers to monitor their own energy use and make reductions in energy consumption and carbon emissions as a result.
"Smart meters will also mean the end of inaccurate bills and estimated meter readings.
The project will affect 26 million homes, and several million businesses. The government hopes smart meters will save between £2.5 billion and £3.6 billion over the next 20 years.
But consumer groups have warned the smart meter will not be the answer to Britain's energy needs.
Which? energy campaigner, Dr Fiona Cochrane, said: "Smart meters are not a silver bullet - we can't assume that just because a digital box is fitted in your cupboard, you will automatically make big savings on your energy. Smart meters will only deliver real benefits to consumers if they provide useful information - such as the energy consumption of domestic appliances - and it's up to the government to ensure this happens.
"In the meantime, it is essential that suppliers, the government and Ofgem take action to simplify bills and tariffs to ensure people are able to take control of their energy consumption to cut their costs and carbon emissions."
The government will now begin a public consultation until July to decide the best model for roll-out.
According to the plans, the preferred option is the 'central communications model' - where energy suppliers are responsible for the installation and maintenance of the smart meter but the communication to and from the device is coordinated by a third party across the whole of Great Britain.
Other options include making energy suppliers manage all aspects of smart metering, including installation and communication, and fully centralised - where regional franchises are set up to manage the installation and operation of smart meters with the communications to and from the meters managed centrally and on a national level.
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