British householders could save the equivalent of 7.4 million tonnes of CO2 emissions with smart meters

Smart meters - advanced electrical meters - allow householders to monitor how much their energy (gas and electricity) use costs the environment and their pocket. They can also tell instantly which household appliances are costing the most money to run.

The devices have been trialled in countries ranging from Sweden to the US but are not widely available in the UK yet. These trials have shown that householders who use smart meters can reduce their energy bills by between five and 10 per cent.

Based on savings of five per cent the Energy Saving Trust estimates that if everyone in the UK switched to smart meters British householders could save £1.2bn a year and the equivalent of 7.4 million tonnes of CO2 emissions.

New research reveals that eight out of 10 Brits don't know what they are paying for their gas and electricity. The figures also suggest 82 per cent of Brits don't know what energy rate they are on while energy bills are seen as the most difficult to understand of all household bills.

The research, commissioned by the Energy Saving Trust, finds that almost half of respondents would be interested in having a smart meter and 96 per cent of those would then use the device to help cut their home energy use.

The survey also finds that of those interested in using a smart meter to save energy:
* 86 per cent would turn their thermostat down by one degree.
* 81 per cent would turn lights off when not used in rooms.
* 76 per cent of people would turn the television off standby.

Of everybody surveyed, 32 per cent of people find their energy bill hardest to understand compared to: water bill 19 per cent; phone bill 16 per cent; credit card statement eight per cent; bank statement eight per cent; cable bill seven per cent.

In addition, 54 per cent of people said they are interested in a smart meter so they can get accurate bills by paying for actual and not estimated usage.

Philip Sellwood, chief executive of the Energy Saving Trust, said: "Our study finds that energy bills are the most difficult to understand of any household bill: twice as hard as phone bills and four times as difficult as bank statements or credit card bills. The lack of transparency surrounding energy usage is one of the biggest problems holding back the UK's fight against climate change. And without the uptake of smart metering, this situation is not going to change any time soon."

He added: "The current situation is hard to believe, especially with the recent rise in household fuel bills. Most people would never sign a mobile phone contract if they didn't know how much it would cost for calls. Similarly, you wouldn't shop every week and then get the bill three months later and just hope you could pay for it. Smart meters help householders work out how much energy they are using, how much they are paying for it as well as showing in real time which appliances are producing the most CO2."

Sellwood urged Government to take action: "While the Energy White Paper outlined the need for energy suppliers to make better displays available to households free of charge on request, we would like to see the Government act more boldly and offer the support necessary to enable smart meters to be rolled out across the UK. Smart meters are better than clip-ons because they offer two-way connectivity with the energy supplier - not only for electricity but also gas too; this means that the energy cost displayed would exactly match what you owed the energy supplier. You would also know the carbon cost of what you are doing."

He went on: "In addition, smart meters offer the opportunity to track usage over a set period of time, meaning householders could identify when consumption is highest and therefore where energy savings are possible. And the energy supplier would also be able to see this information and offer solutions. If the UK really has aspirations to be a world leader in the fight against climate change, then smart meters have to be part of the solution. That's why the Energy Saving Trust strongly supports the installation of smart metering in new dwellings and during major refurbishments, as well as smart meters being installed in every home during the next five to 10 years.

"The cost of installing smart meters needs to be spread across industry and households over the lifetime of the meter. We need the right regulatory framework to make sure that the costs and benefits are attributed fairly. But we've also got to remember that smart meters do not make people save energy alone. They help inform. So there remains a real need for householders to keep getting the simple advice on what they can do."

Other smart meter benefits identified in the Energy Saving Trust's report include:
* Frequent data on energy consumption (both gas and electric).
* Time of use data; historical use data.
* Differential tariffs based on time of use.
* Greater control over peak demand.
* Ability for the energy suppliers to send energy saving tips to consumers based on their usage.
* They monitor the energy renewable energy sources installed in the home, such as solar panels and wind turbines, are using and producing.
* The ability to switch between credit and pre-payment functions.

Smart meters would cost between £100 and £200 if mass-produced. Smart meters could only be fitted by professionals. The take-up of smart meters requires Government backing and a commitment by energy suppliers.

In the meantime, the Energy Saving Trust has identified a number of simple ways consumers can cut their energy consumption and running costs: Look out for the Energy Saving Recommended logo when you are buying new electrical appliances. The logo appears on a growing range of products - from fridge freezers to light fittings - indicating the most energy efficient in the market place. Computing equipment is set to be included as the scheme expands its categories.

Also, visit www.energysavingtrust.org.uk for the Energy Saving Trust's Buyers' Guide and details of the most energy efficient products. For further advice, contact the Energy Saving Trust's network of advice centres, which offer consumers advice and information on energy efficiency.

Related categories:  Climate change and global warming   Environmental legislation   Environmental technologies for Residential and Green homes 

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