Euro MP paves way for 'smart' energy meters

12.00.00pm UTC (GMT +0000) Tue 7th Jun 2005

A Plan to introduce 'smart meters' to check on gas and electricity use in every home has been backed by MEPs.

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

Smart metering services, which will be will be introduced to all new connections and as existing meters need replacing, 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 force 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.

Graham Watson MEP said:

"A major cause of personal debt in this country is having a huge gas or electricity bill land on your door mat after months or even years of estimated bills, or no bills at all."

"Liberal Democrat MEPs have introduced an amendment which will require gas and electricity companies to send accurate, regular bills based on actual consumption. This will make a real difference to vulnerable people 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."

The watchdog energywatch 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 well underway. The programme will cost €2 billion, but annual savings in distribution costs are expected to be €500 million per year, meaning the programme is expected 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."