Valerie Elliott, Consumer Editor
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A gadget to monitor household energy use is to be given free to every home that wants one.
The move is intended to make households think about the amount of energy they waste and for them to learn new habits such as switching off lights and turning off TVs and computers at the wall.
Energy companies are to supply the visual display units, which can show “real-time” energy use, to any customer who asks for them for a two-year period from next year.
They must also supply them to every new home and whenever a meter is being replaced.
Ministers believe that consumers will soon economise on energy when they realise the amount of money they are wasting on unnecessary energy use that leads to higher bills.
A control is attached to a household meter and the consumer uses the display unit to test the electricity use of each appliance in the house – from games console to table lamp and washing machine.
The main government goal is for every home to have a “smart meter” for gas and electricity installed within ten years.
These meters cost about £250 to install today but if there is a nationwide take-up the price is expected to drop to about £150. Companies will be expected to pick up the cost of these meters but some industry figures believe that higher energy bills are inevitable.
The advantage of the smart meters, however, is that they show the amount of energy being used in a home at any one time. It might also encourage utility companies to introduce discount prices for energy use in off-peak hours. The meters can be read remotely, so bills are more accurate.
Alistair Darling, the Trade and Industry Secretary, made clear in yesterday’s energy White Paper that he believed that consumers would change their behaviour to save money and reduce their carbon emissions to help to combat climate change. He is shortly to announce a two-year pilot project to test smart meters in several thousand homes.
EDF Energy has already installed smart meters in 200 homes in London and the South East in the past few weeks but hopes to involve 3,000 households in the trial before a national roll-out.
A smart meter would also provide an easy way to allow homes to sell back unused energy to the National Grid.
There was little in the White Paper, however, to encourage consumers to invest in wind turbines, solar panels and other microgeneration schemes.
The Government has already announced that it is lobbying the EU to allow only 5 per cent VAT on these items but there was no attempt to push energy companies to offer higher prices for surplus energy from “green” homes.
At present some companies buy back at 4p per kilowatt when they charge customers at least 10p.
The policy paper merely called for companies to be more transparent in the tariff they offered to buy in power.
The National Consumer Council was disappointed about the lack of urgency from the Government in the introduction of smart meters.
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I do not see the difference with the ones that are already available (except that there is a lot of additional hardware involved) : see for an example of a free monitor : http://econote.nibfo.eu (some two years available in te Netherlands)
berend123, drenthe, the netherlands
These smart monitors are different to the smart meters; these won't be used for billing like the meters. Both tell you how much energy is being used, with the monitor, you can take the display around the house and see the reading change as you turn things on and off.
Hopefully one consequence will be people stop banging on about turning things off instead of on standby. The meters will demonstrate that in combination, they use no more than a single light bulb. Which makes little difference to anyone's bill.
Rich, Birmingham, UK
I agree with the government that the introduction of electricity meters showing the rate of energy consumption would help to reduce total consumption.
I think this would be even more applicable to fuel consumption and consequently the government should make it compusory for all new cars to be fitted with fuel consumption meters.
When drivers realise just how much extra fuel is consumed when driving at 80mph instead of 60mph I am sure they will come to the conclusion that the extra fuel cost is not worth the 10 minutes saved on a typical half hour motorway journey.
Richard Temple, Sevenoaks, England
If checking the figures on the bills from their gas and electricity providers isn't enough of an incentive for people to economise, what difference would an extra meter make?
Barry, Wallington,
What is the point of these meters? If I care to spend half my life in the cellar I can calculate my usage from my existing meter, by turning things off in turn (which seems to be what you will need to do with this meter too) without spending a fortune on a new one. And this on top of having to spend good money on an energy performance certificate for the house (the EU directive requires these for all houses, not just at the point of sale, and to be repeated every so many years too - costing more than you can possibly save).
But I have not found that the so called low energy bulbs make any difference. The average use over the last year (no change in appliances) after I installed them is virtually the same as the year before.
alexandria, Sheffield, UK
I assume that these smart meters will display the current RATE of consumption ie how many KWatt are being consumed at any moment. The TOTAL consumption ie KW hours, between quarterly meter readings will, as on the old type meters be what you pay in your bill. There is only one source of information about your total consumption - the reading on the meter (both old and new type). Either you or the meter reader can note the figures.
Incidentally a far cheaper device for measuring both rates of consumption and total consumption over time which plugs into a wall socket can be bought for around £20 from electrical stores and departments. It can be used on any electrical equipment with a 13 amp plug on it. For example to check the consumption of a TV on standby.
Bob T, London, UK
Smart meters are useless if they don't show you where energy is actually being wasted.
My advice is to switch off the following when not in use, no standby:
Digital TV boxes
VCRs
DVDs
Hard disk recorders
Sky boxes
Change all lights to low energy lights. You can blag enough of these for free from electricity companies. The 100 Watt equivalent bulbs work on between 12 and 20 Watts actual.
Buy a new energy efficient electric oven or hob. This can be picked up very cheaply. But buy the efficient one. A lot of companies are pushing inefficient stock which is often more expensive!
Watch your electricity bills fall 60%! Marvellous. Gas next. Much easier. However, dont be fooled into un-necessarily changing your boiler. There are better ways to keep warm and get hot water!
Michael, London, UK
The need for "smart meters" and the corresponding new opportunities for energy efficiency measures is clear and present throught this white paper. I would prefer that they had been mandated but I can see the logic in simply telling the energy industry that we expect them to complete full smart metering roll-out within 10 years.
I have two questions about these "free" displays that I hope someone might answer, I'm afraid they're both a little technical.
Who is going to pay for and be responsible for the "free" display devices that we consumers can demand?
What will happen if my display says I have used £100 worth of energy and my uninterested call centre worker's screen says I
owe £200?
Will I be able to insist that my information is definitive?
Gerry, Birmingham , UK