Smart meters on every UK household planned for 2020

A plan to install smart meters in every home across the UK was disclosed by the Department for Energy and Climate Change (DECC) recently. The £8 billion scheme, consisting of 47 million smart meters, will be mounted to 26 million properties in the UK by 2020 and is expected to save consumers up to £28 yearly. The installation of smart meters is considered as a significant step headed for the power system of the future, where smart machines and electric cars need to acquire and use economically-priced energy.

Meanwhile, DECC’s recent case study showed that consumers using smart meters tend to moderate their energy consumption, which could ultimately result to a £100 saving on their annual bills. Minister Lord Hunt of Energy and Climate Change said that the smart meters could help consumers to control how much energy they use, lessen carbon gas emissions and cut bills.

The proposed smart meters have a built-in visual display that will allow customers to glimpse their actual usage of gas and electricity. The meter has a system that automatically relays the data it has collected to energy suppliers.

Rather than distribution networks, energy suppliers will take care the installation of smart meters at a cost of £340 per family unit. They will be able to get back the installation cost from consumers through upfront fees or higher bills. However, rivalry between energy suppliers will likely ensure that only part of the cost is passed on.

A plan for a smart grid was also revealed by DECC to manage electricity flow and boost the use of renewable energy in the UK.