DECC urges energy suppliers to install smart meters

In line with the UK government-backed scheme to introduce cheaper electricity and gas bills for consumers, the Department of Energy and Climate Change (DECC) urges energy suppliers to completely install smart meters in every household by 2020.

The government agency believes that the device will help cut energy expenditure by enabling consumers to be aware of the amount of energy used. A smart meter comes with a display screen which gives users instant energy consumption reading, letting consumers see the exact cost of energy utilized and monitor the usage of their appliances.

According to DECC, recent tests of the £8 billion project in homes across the country had shown that a smart meter could save each consumer an annual sum of £28 on bills and a further £92 for SMEs.

In the current economic situation, it is important for energy consumers to incur cheaper electricity and gas bills. DECC also informed that the scheme could also cut carbon emissions while making electricity usage more efficient.

The new scheme however could potentially result in job loss for workers who are presently employed to check traditional meter readers. British Gas though contradicts the prediction, saying that the energy-saving project is expected to generate 2,600 new jobs instead for the gas company by 2012.

Further doubts have also been raised that although the project will be cost-effective for energy suppliers, the multi-million pound bill for the ten year scheme will be fuelled by an increase in gas and electricity prices for the consumers. Mark Todd from Energy Helpline, a firm that provides electricity and gas price comparisons for consumers, said that energy suppliers should prove that smart meters could make bills go down, not up, to maintain public support.