A new report from British Gas claims the smart-meter roll-out will save households an average £65 a year.
The report, published today by British Gas and Oxford Economics, states that Britain will be almost £14 billion better off thanks to the introduction of smart meters to British homes and businesses. It claims that while smart meters will initially cost around £11.5 bn to roll-out, the benefits could come to £25.3bn. These savings will include: – £11.2 billion from consumer energy.
The report estimates that households and businesses will use less energy thanks to the greater control and transparency around energy use offered by smart meters. – £10.7 billion from greater efficiency for energy suppliers.
It also predicts that energy savings will be passed on by energy companies to consumers in the forms of bill reductions. – £3.2 billion from generation related savings. Furthermore, the report predicts that lower energy usage will lead to savings from carbon reductions in traded and non-traded energy sectors.
Smart meters are a new kind of energy meter that send electronic meter readings to your energy supplier automatically, and are due to be rolled out across all households by 2020.
What we say
Ann Robinson, Director of Consumer Policy at uSwitch welcomed the report, calling it a ‘first step in opening up the debate about smart meters': “It’s the first time that there has been any real analysis to demonstrate that smart metering will save householders money – consumers will be reassured that smart meters could help save £65 a year off the average household energy bill.
“However, many of the benefits highlighted in the report rely on consumers changing their behaviour – our research shows that less than half of consumers know what a smart meter is (45%) while just over a third (35%) have heard of them but have no idea what they do.
“If consumers are to fully realise the cost savings, they can no longer be kept in the dark. This report has to herald the start of consumer engagement and education otherwise, instead of being a game-changer, smart metering will fall flat on its face.”
Smart meters – Learn all about smart meters, from how they will save you money to how to get one installed.