GBP13.4 Billion Investment In Smart Meters, But 57% Of Brits Don't Know What They Are

    LONDON, ENGLAND, November 10, 2009 /24-7PressRelease/ -- The results of the Government's recent consultation on smart metering are imminent and are expected to clear the way for a GBP13.4 billion investment programme. The roll-out of smart metering into British homes could begin as early as next year. But with 57% of people not even knowing what a smart meter is the Government and energy industry could face an uphill battle persuading consumers that they should be picking up the tab says uSwitch.com:

•Smart timetable: smart meters to be installed into every home by the end of 2020
•Less talk, more action: Government consultation ended on 3rd August, 2009. Announcement on smart roll-out imminent
•Knowledge gap: 57% of consumers don't know what a smart meter is
•The bill: total cost of securing the country's longer-term energy supplies, reducing carbon emissions and rolling-out smart meters into all homes is expected to hit GBP233.5 billion. Smart metering alone will account for GBP13.4 billion
•The cost to consumers: investment programme is expected to add GBP548 a year onto household energy bills for the next 15 years
•Picking up the tab: 36% of consumers are only prepared to pay an extra GBP100 a year to fund the investment - only 19% say that significant bill increases are a price worth paying
•Not prepared to pay: 30% don't care about carbon emissions and would rather keep their energy bills lower instead.

New research from uSwitch.com reveals a huge gap in the amount of investment needed in Britain's energy supplies and the amount British consumers are prepared to pay to fund it. The total cost of securing the country's longer-term energy supplies, reducing carbon emissions and rolling-out smart meters into all homes is expected to hit an eye-watering GBP233.5 billion, which could add GBP548 a year onto household energy bills for the next 15 years. However, only 19% of consumers believe that a significant increase in household energy bills is a price worth paying for this.

Over a third of consumers (36%) would be willing to see their bills increase by up to GBP100 a year to meet the investment costs - a GBP448 shortfall on what is potentially required. A further 3% would be prepared to see bills increase by up to GBP300 a year - GBP248 less than the anticipated cost[4]. But despite tough targets for the UK to reduce carbon emissions and the pressure to 'go green', 30% of people say they don't care about carbon emissions and would rather keep household energy bills lower instead.

Smart metering alone will account for GBP13.4 billion of investment. But the research reveals another gap - in consumer knowledge. 57% don't know what a smart meter is, suggesting the need for a far reaching consumer education programme before smart meters are rolled out into people's homes. If this doesn't happen consumers could very well resist, but their compliance will be needed if roll-out costs are to be kept to a minimum and the schedule is to stay on track.

The signs are that a consumer education programme would be enough to get people on side. Smart meters allow consumers to accurately monitor their energy usage and the research shows that once this is explained people are quick to grasp the benefits. Almost three quarters (71%) said they would use smart meters to help cut the cost of bills and over half (53%) would use it just to be reassured that their energy bills are accurate. Just under a quarter (24%) would use the information to better manage their payments to their supplier and to avoid going into debt.

Will Marples, energy expert at uSwitch.com, says: "The switch to smart meters could be a disaster unless people fully understand the reasoning behind the move and how it will benefit them in the long run. Before starting the roll-out the Government has to get consumer buy-in.

"Consumer education is a priority if the roll-out is to be a success, but it's also important that the final specification of the meters meets consumer needs and gives householders all the information they need in a simple to use format. Finally, with householders likely to be bearing the brunt of the costs, consumers need reassurance that the roll-out will be efficient, speedy and as cost effective as possible. At the end of the day household energy bills are likely to increase substantially and consumers will be looking for value-for-money in return.

"People can also start to take steps to ready themselves for what is going to be a sea change in how household energy will be managed in the future. By moving to a cheaper energy plan and lowering their energy usage now they will be in better shape to absorb the increased costs when they come. They should also get as much information as possible and work with their supplier to ensure that they really benefit from their smart meter when it is installed."

See the full version of this press release.

For more information please contact:
Jo Ganly 0207 802 2980 / [email protected]

Website: http://www.uswitch.com

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