The Government and energy regulator Ofgem have published the long-awaited joint smart metering “prospectus”.
The document, published late July, set out proposals for how smart metering will be delivered, including design requirements, data management and the approach to the roll-out. Although the plans were largely focused on installing smart meters for domestic customers and the accelerated roll-out target to 2016, the proposals also covered small- and medium-sized businesses.
The Government has concluded that the lack of sufficiently accurate and timely information on energy use may prevent businesses from taking informed decisions to reduce consumption––and therefore bills––as well as CO2 emissions. Improved information should also help with the development of future smart grids, which is another key policy objective.
An updated impact assessment has also been published covering the costs and benefits for small- and medium-sized businesses. The entire cost of the programme, to ensure all of 2.1mn electricity and 1.5mn gas business meters are “smart”, was estimated to be £595mn. Over the same timeframe the benefits were estimated to be £2,805mn, with over 80% assumed to accrue to customers. The bulk of these gains were expected to come from energy savings. On average, use was estimated to decrease by 2.8% for electricity and 4.5% for gas, due to the improved consumption information being made available to the customer. The remainder of the benefits would result in lower meter reading costs and improved customer switching efficiency for suppliers.
The prospectus is a landmark. We can now expect details of the roll-out to homes and businesses to be firmed up over the coming months.
To view the full prospectus, please follow the link below :-
http://www.ofgem.gov.uk/e-serve/sm/Documentation/Documents1/Smart%20metering%20-%20Prospectus.pdf
Source : Ofgem
.jpg "Smart meter, one step to reduce energy consumption")
