15th July, 2010
IHP energy provider Saturn warns over ‘smart meters’ programme. The energy supplier has warned that £9bn plans to install “smart meters” in every household by 2020 will be wasted unless the public and businesses are educated how to use them.
Saturn Energy claims that, without a proper follow-up programme, smart meters will have no impact on the nation’s energy bills.
Saturn managing director John McShane stressed that meters don’t save energy – people do. He commented that without a massive drive to change people’s habits, large savings and a significant reduction of the UK’s carbon footprint will not happen.
Saturn also warned that the bill for installing smart meters could increase household energy costs as power companies look to fund the new infrastructure and support systems.
The meters are expected to cut the average £1,000-a-year dual fuel energy bill by at least 3%, and possibly as high as 10% in some cases.
A 3% saving would reduce energy demand by the equivalent of the output of four power stations.
But Mr McShane said the major issue was ensuring households were able to use information from smart metering to take action to cut their bills: “It will be essential that the energy supply companies actively educate customers, particularly those for whom this type of technology is unfamiliar, to build up trust that the information is both accurate and useful to managing their costs.”
And he added: “Energy companies will also face two new costs that we fear they will have to pass on to consumers, one way or another.
“First, there is the additional cost of installing meters across the whole of the UK. Then there is the additional resourcing and personnel required to deal with the large increase in customer enquiries.”