It's official: Every British home will have a smart meter by 2020

Every home in the UK is set to have a smart meter for tracking energy use by the end of 2020, under plans published today by the Department of Energy and Climate Change (DECC).

“A global climate deal in Copenhagen needs all countries to make the most ambitious commitments possible, but it will also require all of us to change how we lead our lives and how we generate our energy,” said DECC Minister Lord Hunt. “Smart meters will put the power in people’s hands, enabling us all to control how much energy we use, cut emissions and cut bills.”

He added, “Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear and clean fossil fuels … Globally the business of developing smart grids has been estimated at £27 billion over the next 5 years and the UK has the know-how to be part of that.”

The government’s plan for the smart meter rollout includes:

• Making energy suppliers responsible for installing smart meters in their customers’ homes;
• Supplying a standalone display device with meters to make it easy for consumers to see and understand their energy use and carbon emissions in real time; and
• Centrally coordinating the communications between smart meters and the utility companies to ensure easy switching between suppliers, and to provide a platform for the development of smarter grids in the future.

Steve Cunningham, CEO for UK and Ireland operations for smart meter firm Landis+Gyr, welcomed today’s announcement:

“The UK now has the opportunity to lead the world into second-generation smart metering and energy management. If you believe that ‘first-mover advantage’ applies to the global green economy and that even the low estimates of 3% per-household energy savings are worth achieving, you’ll support the roll-out.

“Detailed planning is critical but so is the need to understand how consumers will use and benefit from smart meters in a real world setting. Volume trials in the UK’s uniquely complex and competitive market will underpin a smooth roll-out and represent the crucial next step. With every year of delay, the UK will lose more than £500 million in missed energy bill savings.”

However, today’s announcement was met with disappointment by Joel Hagan, the chief executive of Onzo, which makes a smart energy kit with display, sensor and web portal.

“It is disappointing that the Government has decided to mandate energy displays rather than mandating the information that energy suppliers should provide to their customers and leaving it to the energy suppliers to compete in relation to how that information is delivered,” Hagan said. “Everything now rests on the effectiveness of those displays. At £15 per display, it is doubtful whether the reductions in usage that the government anticipates will be realised.”

He added, “Today’s plans for smart metering roll-out yet again raise more questions than answers. There is no clarity on what the energy display should do, and this prevents the industry from innovating and progressing development in time for roll-out.”

Also today, the government published a guide, “Smarter Grids: The Opportunity,” to make the case for developing smart grids in the UK. Smart grids are intended to give both operators and consumers more information about supply and demand of electricity, enabling more effective interaction between consumer needs and fluctuating supplies.

Specifically, smart grids will be designed to:

• Deliver electricity more efficiently and reliably, thus reducing the costs and emissions from electricity generation and transmission;
• Facilitate increased generation of low-carbon electricity sources such as wind; and
• Along with smart meters, give consumers more control and choice of when they use electricity, allowing them to save money.

DECC is also providing £6 million to companies to continue developing smart technology such as electricity storage.