The Government has announced its plan to start the roll-out of smart meters, with 50m devices to be installed on 30m properties in the UK. Here we have a look at the roll-out plan and how it is to be implemented and also explain what smart meters are and how they will help us.
The 5 year plan is to begin in 2014, with the time between now and 2014 being used to standardise the design of smart meters and establish a Data and Communications company to provide services for smart meters. The scheme is expected to cost around £11bn and will make savings in excess of £18bn to households and businesses over 20 years.
Energy suppliers will be required to deliver the roll-out of smart meters, with Ofgem regulating the scheme. There will also be a private company established to manage the data from smart meters.
What are Smart Meters and what will they do?
Smart Meters, in their simplest form, are new electricity and gas meters that provide real-time information to the energy supplier. They also have energy monitoring functions available to the property occupier, either through an energy monitor or via the internet.
It is thought that by providing real time data, energy companies can save money by not having to read individual meters. Meanwhile, for consumers it is believe that if they see where and when they use the most energy, they will make energy efficient decisions to lower consumption.
It is also believed that through a more macro and reliable data set of energy consumption, energy companies can create more effective energy price tariffs, to encourage lower energy consumption. This is part of the wider Smart Grid technology to be developed, whereby the grid has to be adjusted for all the new renewable technologies that are coming onto the grid (such as large wind farms and solar PV).
