Minimum savings will come from smart meters

There has been a lot of talk about how the rollout of smart meters for households and businesses in the UK will provide a win win situation, where consumers and businesses will save money on bills and energy firms won’t have to send out inspectors because the usage data will be sent to them automatically. It is claimed that these smart meters, which are digital meters, will put an end to the unreliable estimated bills that energy firms send out.

However, it has recently been revealed that consumers will not benefit from the smart meters because the cost of the rollout will be factored into their bills, which effectively means that they will be paying for them, yet the savings that they are set to make only comes to around £23 by 2020. The cost of the rollout is said to be around £11.3 billion and the Department for Energy and Climate Change has said that this is something that consumers will end up paying for.

The estimated saving is only 2 percent of the average household annual energy bill, and officials have said that it does not take into account any increases in energy costs over the coming years. Ofgem, the UK’s energy regulator, has estimated that bills could increase by between £168 and £700 a year by 2016 because energy firms need to invest in new power stations, which will result in costs being passed onto consumers.

Chris Huhne, the Climate Change and Energy Secretary said: “Smart meters are a key part of giving us more control over how we use energy at home and at work, helping us to cut out waste and save money. In combination with our plans to reform the electricity market and introduce the green deal for homes and businesses, the roll-out of smart meters will help us keep the lights on while reducing emissions and getting the best possible deal for the consumer.”

Tags: annual energy, electricity market, households, Department for Energy and Climate Change, win situation, Minimum savings, Household, business