East Midlands Euro MP paves way for 'smart' energy meters

2.41.37pm BST (GMT +0100) Tue 7th Jun 2005

An EU proposal to introduce 'smart meters' to measure gas and electricity use in every home has been backed by MEPs in its first reading in Strasbourg this week.

The proposed EU law, aimed at increasing energy efficiency and curbing climate change, would also play a role in helping tackle consumer debt.

The smart meters will be introduced to all new connections and when existing meters need to be replaced. This will allow consumers to check at a glance how much energy they are using and how much it will cost. The new meters are part of a package of measures that will also oblige energy companies, for the first time, to give individual consumers accurate and detailed bills along with information about the environmental impact of their energy use.

Bill Newton Dunn, Liberal Democrat MEP for the East Midlands, said:

"One cause of personal debt for some people is having a huge gas or electricity bill land on your door mat after months or even years of estimated bills, or even no bills at all."

"Liberal Democrat MEPs introduced an amendment in Strasbourg which will require gas and electricity companies to send accurate, regular bills based on actual consumption. This will make a real difference to vulnerable consumers in helping them to save money by cutting their energy use and in stopping the widespread problem of serious debt from unexpectedly large fuel bills."

'energywatch', the UK's independent energy watchdog, wants Britain's energy industry to learn from the experience of Italy where a programme to convert its 30 million customers to smart metering is already underway. The programme would cost €2 billion in the UK, but annual savings in distribution costs are expected to be €500 million per year, meaning the programme should to pay for itself in four years.

Allan Asher, energywatch Chief Executive, said: "All consumers want to save money. Some even want to save the planet. With the right information people can cut their energy consumption and do both. The technology exists but, in the UK at least, the will is lacking. I hope this important legislation will give the push we need for smarter meters and smarter markets."