Energy News

Consumers to foot bill for energy smart meters

Friday 1 April, 2011

By Martin Fagan - news@consumerchoices.co.uk

After months of speculation, the government says consumers, note the energy industry will be paying for smart meters.

After months of speculation, the government says consumers, note the energy industry will be paying for smart meters.

Consumers will have to pay for the 30 million smart meters which must be in UK homes by 2020.

Originally, the cost of providing and installing the smart meters was to be met by the energy suppliers. But now the Department of Energy and Climate Change (DECC) has placed the burden of cost on the consumer, who will pay for the installation through higher utilities bills.

As a result of smart metering, DECC says by 2020, the average consumer (with both electricity and gas) should save around £23 per year on their energy bill. This works out at a net benefit to the nation of £7.3 billion over the next 20 years.

However, consumers are giving smart meters a lukewarm welcome. According to research by uSwitch.com, the switching service, a mere 15% of people welcome the move to smart meters, and while four in 10 consumers know what a smart meter is, 25% have never heard of them.

“This finally confirms that energy customers will be footing the £11.3 billion bill for smart meter implementation,” said Tom Lyon, energy expert at uSwitch.com.

“Although this may mean more accurate and potentially lower bills in the future, the short term impact is that bills will rise. What consumers now need to know is by how much and at what point they can expect to see the net £23 a year savings the Government now predicts.”

The rollout of smart meters will take place in two phases; the Government expects the mass roll-out second phase to start in early 2014 and to be completed in 2019.