UK 53 million smart meter rollout

The UK government has declared the overall strategy and timetable for the installation of 53 million smart meters in 30 million homes and businesses across Great Britain. The mass rollout is expected to begin in early 2014 and be completed in 2019, meaning the next three years will be crucial for smart meter companies within the UK as they look to push their products.

This rollout is the first stage in the UK’s plan to implement a ‘smarter grid’ for the future, which will be able to handle the increasing constraints from a wider input of low carbon energy sources and increasing overall demand due to transport and heating being electrified.

The benefits of installing smart meters include:

• Consumers obtain real-time information on energy consumption, thus allowing them to control energy use, save money and in-turn reduce emissions. Average consumer savings are expected to be £23 per year on energy bills by 2020.
• Suppliers will have access to accurate data for billing, allowing them to improve customer service and reduce costs e.g. ending visits by meter readers.
• Energy networks will have better information with which to manage and plan current activities as well as the move towards smart grids to support sustainable energy supplies.

Thus, the effects of widespread adoption of smart meters are not only seen on the individual scale, but also all the way up-stream within the electricity generation industry

The smart meter rollout will take place in two phases. The first beginning now and lasting up until 2014, where government will work with industry, consumer groups and other stakeholders to make sure all the ground work is done for the second stage, the mass rollout.

The most important stage for the smart meter industry within the UK is the foundation stage as this is their opportunity to impress government with their products in order to get the big contract. These companies will have to be able to demonstrate that their systems are easy to use, engaging, able to deliver energy saving benefits and finally scalable for mass rollout. This will be done through building and testing trial systems in order to gain customer feedback and produce the optimal system. However, competition is expected to be fierce between rival smart meter companies.

Energy Minister Charles Hendry said “Ensuring a secure energy supply, moving to a low-carbon economy and keeping prices affordable are the key challenges that drive our energy and environmental policies.”

Meanwhile, Darren Braham of First Utility said “there are still several key areas that need addressing to ensure that innovation isn’t stifled in the already uncompetitive energy sector. In particular, the specifications for meters regarding in-house displays and flexibility to create time of use tariffs need to be agreed as soon as possible”.

Thus, government cannot just sit back and expect companies to do all the hard work for them. This will require positive regulation and support for competitiveness within the industry.

Smart meters are just the first step in moving towards a smart grid and the emphasis for smart meter companies in the next few vital years will be to ensure that once installed, the devices are utilised for the whole lifetime. This will require extensive education of what the smart meter does, how it operates and what the potential savings are, as customers will only want to have them in their homes if it is going to save them money.