Customers Unlikely To Benefit From Smart Meters

The average British family will save just £28 a year by 2020 – less than three percent of the typical annual energy bill of £1,000.  With each device costing an estimated £340 to install, it means it will take more than 12 years for the initial costs of the scheme to be recouped. The Department for Energy and Climate Change has previously issued documents claiming that the devices could save householders 10 per cent on their energy bills - equivalent to about £100 a year. Officials admitted last night however, that the average saving would be far lower. 

The admission is an embarrassment for the government who had hoped the controversial scheme will form a centrepiece of the country’s plans to reduce carbon dioxide emissions. Global leaders are preparing to meet in Copenhagen to discuss a new international climate change agreement. It is likely to lead to serious questions over the economic viability of the £9.3 billion scheme. 

Ed Miliband, the Energy Secretary, is however still expected to announce tomorrow that every home will be fitted with a smart meter within the next decade. The smart meter scheme will cost the equivalent of £340 per household, but it is unclear exactly who will pay initially for the devices to be installed. Ultimately, it is feared that the start-up costs will be passed on to consumers in the form of higher energy bills. The meters allow households to be given a real-time guide to their energy usage.