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Consumers unaware of smart meters ahead of EU-wide roll-out

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Published 24 August 2012

A study commissioned by the United Kingdom's Department of Energy and Climate Change recently revealed that over half the population is unaware of the existence of smart meters.

Over 51% of the 2,396 energy bill-payers interviewed by the Ipsos Mori research team in Britain said they had never heard of smart meters. Only one in four said they knew at least a fair amount about the meters, 24% had heard of them but knew nothing about them, while just 2% claimed to know "a great deal". 

The study comes amid plans to roll-out smart meters in all of Britain's 30 million households from 2014 to 2019.

Doubts over roll out

But even figures in the smart metering industry say this objective might be difficult to attain.

Mark England, chief executive of Sentec, a supplier of smart grid and metering technology said in March 2012 that smart meter deployment in 65% of UK homes by 2015 was not possible. 

“The deregulated structure of the UK market is uniquely challenging for rapid and co-ordinated action in a large scale initiative like this," England said in a statement. “There is a great deal of work still to do to finalise the technical and regulatory framework for smart metering.”

The EU's 27 member states are expected to present their national cost-benefit analyses on the deployment of smart meters to the European Commission before 3 September. These are expected to result in 80% of European consumers being equipped with intelligent metering systems by 2020.

The roll-out of smart meters could potentially transform the way energy markets operate in the EU, with customers expected to become more actively engaged in controlling their energy consumption, with the help of demand-response systems. 

Smart meters display household's energy consumption in real-time, giving users the possibility to monitor fluctuations in their energy consumption both locally and remotely – through wireless systems, the internet and smart phones.

Since households are responsible for 40% of total energy consumption, the European Commission believes smart meters will be a key element in reducing energy demand and cutting associated carbon-dioxide emissions.

Who benefits?

While these objectives justify a massive roll-out of smart meters, consumer groups worry that households will not benefit much as efficiency gains are likely to be offset by the rising cost of energy.

“Smart meters might be beneficial to some consumers, but we certainly have doubts about whether they will be beneficial to all consumers,” Johannes Kleis of European consumer group BEUC told EurActiv. He says energy suppliers “could be the ones taking all the benefits” from the EU-wide deployment of smart-metering systems.

If the national cost-benefit analysis due later this year find them beneficial, smart meters could become compulsory across Europe. But low-income households will not be able to reduce their consumption much further, warns Monika Stajnarova, an expert on smart meters at BEUC, because they are already using energy for very basic needs.

“We are against the mandatory roll out [of smart meters] for the whole population - some consumers will pay for the smart meter all the while not being able to benefit from them. Consumers need to be given the choice,” Stajnarova told EurActiv.

The Brattle Group consulting firm estimated in a 2009 study that rolling out smart meters across European households would cost €51 billion by 2020. With energy savings estimated at €26 billion to €41 billion, this would leave a margin of €10 billion to €25 billion between benefits and costs.

Positions: 
John L. Harris, vice-president of smart metering systems supplier Landis+Gyr said he agrees with several of the DECC study’s findings. 
 
"Prior to the rollout, many consumers have little, if any, knowledge of the technology. Even if they have heard of smart metering at all, they usually have only a vague idea of what the technology does and what benefits it can bring," Harris said.
 
"This changes, however, once consumers have smart meters in their homes. Many of the utilities report that customer satisfaction goes through the roof. Consumers may not know much about smart metering when it is first mentioned, but once they have it, they love it. In order to achieve such a response, however, extensive consumer education and information campaigns are essential to make people familiar with the technology before it is put into their homes, and to correct any misunderstandings," he added.
Next steps: 
  • 3 Sept. 2012: Deadline for EU countries to submit their cost-benefit analysis.
  • End of 2012: First deliverables expected for European standards on smart meters.
  • By 2020: At least 80% of consumers should be equipped with intelligent meter­ing system, if cost-benefit analyses are positive.
Ana-Maria Tolbaru

COMMENTS

  • These meters are intrusive and there is some evidence from the USA that they can cause health problems. So I will be refusing to have one installed. I pay extortionate rates for my electric as it is. I will not pay to have the government monitor my consumption or put my families health at risk.

    By :
    Sue
    - Posted on :
    24/08/2012
  • Plenty of rubbish being talked in the above article by people that should know better. Smart meters on their own will have little impact on energy consuming habits. First, the meters will replace the existing meter (in the basement, under the stairs etc). People will pay as much attention to the SM as they do now to the non-SM.

    Second, what people need (to save energy) is information about their energy consumption. Home energy displays located in, for example, the living room or kitchen could provide this. Such displays do not need a smart meter to function. They are also low cost.

    With respect to energy efficiency another study from the UK noted that households spend in the range £50 to £80 per year on electricity used to keep items on standby. The figure is probably similar in mainland Europe. An average (non-electric heating) bill is £500 in the UK. This means that standby accounts for 10 to 16% of a bill. Lighting consumes a further £80ish per year. Changing to LEDs would reduce this to £8ish. So, in the UK, residential consumers could reduce their electricity bills by anything between 26 to 32% with simple energy efficiency measures (all equipment on standby is switched off). These comments could also apply to (some) people in fuel poverty.

    To summarise, low cost home energy displays available now could provide people with timely and useful information on their energy habits – regardless of their financial status. Simple energy efficiency actions could reduce electricity bills by up to 32% - and all without smart meters.

    And finally, there is no evidence that SMs have any health impact whatsoever. There is rumour and hearsay from the USA in this respect but that is all.

    By :
    Mike Parr
    - Posted on :
    24/08/2012
  • Mike, for once I agree with you. The UK has been wholly unprepared for electricity & water consumption with an extra 8 million people in the country. The consumer is paying for bogus green energy projects and uncontrolled immigration yet again.

    As for the health aspects... the public at large do not trust the governments' word or the word of so-called "scientists". We know when we are being conned by the green brigade. The last thing they care about is our health.

    By :
    Sue
    - Posted on :
    24/08/2012
  • Thought some info on the highly- charged controversy in the USA around Smart Meters may be helpful to you all:
    1.Groups Continue Crusade Against Smart Meters Over Alleged Health Risks | Video | TheBlaze.com http://ow.ly/dckww
    2.New Life On A Homestead - Smart Meter Controversy http://ow.ly/dckLD
    3.Privacy and Health Concerns on “Smart Meters” Growing Globally http://ow.ly/dcml4
    4. Google "Smart Meters" and "Smart Meters Controversy" brings up some rich pickings too !

    By :
    P Jacob
    - Posted on :
    24/08/2012
  • I agree with the above that the real issue is awareness raising about consumption in different areas (electricity, heating, water, etc.) and trying to bring about energy savings actions in the home (in many different forms, energy efficient equipment, etc.). Smarter metering systems are one way amongst others of helping people learn about their real consumption patterns, if it is done correctly and communicated well. I also think there is the issue of making sure that there is an understanding of exactly what is defined as a "smart meter" in a given county people so that people are not led astray and so that they know what to expect.

    By :
    Eleanor
    - Posted on :
    24/08/2012
  • People are missing the point: you do not need smart meters to provide energy information to people - you need a home energy display - that is not and never will be a smart meter. SMs for the most part provide benefits to energy retailers. The "benefits" to consumers have yet to be defined/identifed. Taking one example: SMs could deliver accurate monthly billing - oh! er hang on British Gas already do that through a self read system (i.e. no smart meter).

    By :
    Mike Parr
    - Posted on :
    24/08/2012
  • No Mike, you are missing the point. Smart meters are about control.

    http://witteringsfromwitney.com/smart-meters/

    By :
    Sue
    - Posted on :
    24/08/2012
  • I agree with Sue on this - smart meters seem to serve no other practical purpose other than monitoring or controlling people's behaviour.

    If we wish to decrease our use of electricity we will switch things off.

    I also don't understand why knowing when we use electricity is important - what are we all going to do - watch our TVs at 1 O'clock in the morning instead of 7 O'clock in the evening.

    Power stations are already able to measure what electricity we as a population are using at any given time - they know the likely peaks and troughs and can prepare for those times.

    The residents in Holland have successfully fought off compulsory SMs on the grounds of privacy; the Canadians are also mounting a defence against having them on the grounds of health.

    But overriding all of this is the lack of trust that we have in the institutions that are imposing them on us.

    The rampant corporatism, fully backed by the EU, is running wild over our lives and seems to have latched onto the theory of carbon caused global warming and is finding any number of ways to increase their profits.

    By :
    wg
    - Posted on :
    24/08/2012
  • There is more to smart meters than meets the eye:

    Smart Grid as an Element of Political Power

    http://channelingreality.com/Power/smart_grid_as_an_element_of_poli.htm

    http://channelingreality.com/Idx_Smart_Meter_Drama.htm

    By :
    stopcpdotcom
    - Posted on :
    24/08/2012
  • Smart meter technology will allow the unit cost per kW/hr to be set arbitrarily thereby allowing the programmer to add amounts that cover 'other spending' (shall we say). Speeding fine maybe? Council tax perhaps? Limiting your consumption is only PART of the plan - CONTROL is ALL of the plan.

    By :
    Dave_G
    - Posted on :
    24/08/2012
  • British Gas provides consumers with remote electricity real time monitor utilizing a radio sending unit attached to the meter. This is provided on request and their web site amply explains its functioning. I am not aware of any adverse impacts and the replaceable battery in the sending unit is cheap and lasts many monaten. So far careful examination of all appliances in use and on standby has enabled a better control of energy use - and a sensible reduction on costs has been achieved.

    Perhaps it is not that clever an approach since strict control of power consumption can be achieved by more conventional means such as switching items off when not needed!

    By :
    Roberto
    - Posted on :
    24/08/2012
  • I have collected research papers about chronic exposure (http://www.chronicexposure.org) . We should be very careful with large installations of microwave technologies in homes. Another challenge is power quality (voltage transients) in the electrical network.

    By :
    Mikko Ahonen
    - Posted on :
    25/08/2012
  • wg - i agree with you apart from one small point.

    you say that you wish to decrease your use of electricity you will switch things off.

    possibly, but i don't think it will work like that.

    if they wish to decrease your use of electricity, they will switch you off.

    they will also be able to disconnect you without having to visit your property.

    By :
    habitat21
    - Posted on :
    25/08/2012
  • These smart meters will allow centralised control of the electricity supply for every household that has them with the possibility of selective cutting of power to a household level. This is a key piece of technology for rationing electricity under the pretence of tackling mythical global warming. It's just another attack on freedom, predicted by George Orwell in 1984. Smart meters should be resisted.

    By :
    Bloggers4UKIP
    - Posted on :
    25/08/2012
  • Apparently UKIP will sort all this Brussels plot out.

    They will get elected in large numbers, dominate Westminster, and will legislate to pull the UK out of the EU in accordance with the provisions in the Maastricht treaty.

    Then presumably they can trade freely in energy, and ask the Russians politely if they dont mind us installing their meters instead of these terrible Brussels spy devices...

    By :
    Roberto
    - Posted on :
    25/08/2012
  • @Roberto

    Or maybe Britain could leave the EU and save £53 million a day - we could then use that money to come up with our own renewables policies that don't depend on the EU corporatists taking their 40%.

    You may find something to be proud about making the elderly and infirm pay huge tarriffs to large banks in the name of unproven science - I don't.

    Perhaps you could ask yourself one question - Why when we are experiencing this massive threat of AGW do large numbers of our political elite fly around the world without a care for climate change?

    Don't have a go at me, have a word with your EU masters.

    By :
    wg
    - Posted on :
    26/08/2012
  • Italy has already rolled out meters capable of remote reading and remote control. The rollout paid for itself fairly quickly since it allowed ENEL to identify and eliminate a large amount of theft.

    This theft was paid for (subsidised?) by non-theiving Italians electricity consumers. Electricity theft happens in all countries and is by no means unique to Italy. Smart meters will not do many of the thinmgs claimed for them. However, one thing they will do is reduce electricity theft (and reduce the cost of collecting metering data).

    One impression to be gained from the comments is that many people do not like electricity. That being the case, I suggest you tell your energy company to disconnect you.

    By :
    Mike Parr
    - Posted on :
    26/08/2012
  • @Mike Parr

    What a ridiculous thing to say - "that people do not like electricity"

    Electricity is a vital part of our lives.

    What you really mean is that people are not buying into the 'monitoring for sustainability' argument.

    Of course, you have a horse in this race as you have an interest in 'renewables'.

    I don't care what snake oil solution you are providing as long as you don't use my tax to fund it - which, I suspect, is what your enthusiasm for this argument is all about.

    As for using Italian power thieves as a bogey man to scare us into accepting these intrusive devices, well, you have that nasty habit so prevalent in the Brussels corridors, you try to win your arguments using fear as a weapon.

    After 50 years of scares and threats from the EU that particular tactic is wearing a bit thin.

    By :
    wg
    - Posted on :
    26/08/2012
  • Wev should be happy to pay the right tariff for electricity - including any premium on fosstering a switch to effective renewables. I do not like to have to rely on unsustainable polluting sources, or large scale imports from beyond the Urals judging by the way the Ukraine, Poland and Baltic republics appear to have been treated on occasions over supplies.

    I am truly grateful the UK is the EU as otherwise I dread to think just how we stand to be treated as a rich but vulnerable importing country from that source; or even judging by prognosis on the unstable situation in Oil rich countries of the Gulf and beyond.

    Smart meters put meter readers out of a job but so does a lot of internet business!

    By :
    Roberto
    - Posted on :
    26/08/2012
  • we are told by DECC that wind energy is an essential part of our energy mix.

    gordon hughes has calculated that the cost of wind energy is about ten times the price of gas.

    an energy mix is not improved by adding a component which is intermittent and ten times the price.

    By :
    habitat21
    - Posted on :
    26/08/2012
  • Habitat21: never heard of "Gordon Hughes" but Bloomberg New Energy Finance in April published LCOE figures for CCGTs and wind (1MW+) which were roughly equivalent circa 4.5pence/kWhr. BNEF data tend to be used by people financing wind & gas.

    WG: don't use bogeymen & the data came from ENEL - in the case of "Brussels" there is a significant number of people in the EC that do not support Smart Meters as a route to things such as lower electricity bills.

    I have at no point proposed to use your taxes to promote anything. If you are going to post here - get your arguments straight - otherwise you will tend to look silly/stupid.

    By :
    Mike Parr
    - Posted on :
    27/08/2012
  • Mr Parr, you sell yourself as a consultant with 20 years experience in EU environmental regulation.

    If the European Union 'consults' you, you are partly responsible for the policies followed and the cost of those policies.

    And as for not using my taxes - if you are being paid by the EU, my taxes are paying for you.

    I would much rather be silly/stupid than exploit the poor and vulnerable for my own gain.

    By :
    wg
    - Posted on :
    27/08/2012
  • wg: - there you go again: assertions with nothing behind them: have not done any paid work for the EU for more than 10 years. That's not to say I don't meet with EC officials. Recent meetings have focused on the lack of benefits that SMs bring and the need to address energy poverty partly through energy efficiency. Yeah - I can how that "exploits the poor & vulnerable". Usually when in a hole one stops digging - in your case, please feel free to keep digging.

    By :
    Mike Parr
    - Posted on :
    27/08/2012
  • I shall

    By :
    wg
    - Posted on :
    27/08/2012
  • Just a couple of comments regarding UK housing, especially the new housing that is being put up. Electricity usage in new houses has risen because:

    1. insulation on the outside now prevents entry of passive heat from the sun, with the result that people now 'have' to turn on their central heating (gas or electric) on summer evenings when they return from work. Visit your attic - the floor of which is now highly insulated on the orders of decc. - you will immediately notice the heat compared to the 'freezing' temp. of the rooms below the insulation!
    2. heating layouts in houses now mean that when the heating is turned on, it is not usual to be able to heat only one room; and even where it is, instead of heat emanating from a point source e.g. a fire place, heat is 'poured out' from a diffuse source e.g. under floor. This uses a lot more kW to produce sufficient heating, and the population is getting used to being much warmer!
    3. Ground source heating could supply water to the heat exchanger at a constant 10 - 14 deg. C. However, some installers do not realize that hot water (and air) rise, so they are pumping (electricity use) the water around the loop, thus not giving it a chance to warm up and also failing to insulate the piping through the first meter (depth) from the house down into the ground. The ground loop pipes actually need to be insulated down to a depth where the temp. is at least 10deg C i.e. c. 100feet min. Thus this brilliant idea is, in most cases actually causing the use of even more electricity. 1kW in should result in a heating output of 4kW, but many users report only 1:1 or even less.

    By :
    Alison Tottenham
    - Posted on :
    27/08/2012
  • Regarding the Smart Meters:

    What would be helpful is a smart meter that I could attach to my cooker, freezer, microwave, or other household gadget as required. This would enable me to use these gadgets most efficiently e.g. would I use less electricity if I baked a double quantity of bread at the one time and froze half - the oven would be on for the same time, but the freezer would then have to spring into action to freeze the extra output. I suspect that this would save electricity, and such a moveable gadget meter could prove the case to me!

    It is not helpful to me, the consumer, to have a meter in front of my nose, telling me how much electricity I am using; for the simple reason that I already use as little as possible for simple financial reasons!

    By :
    Alison Tottenham
    - Posted on :
    27/08/2012
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    By :
    Woombsof
    - Posted on :
    09/09/2012
The Commission is waiting for the cost-benefit analysis of smart meters from member states
Background: 

Smart meters are used in conjunction with communication systems to allow customers to monitor their electricity consumption in real time.

The gas and electricity directives of the EU's Third Energy Package, adopted in 2009, require member states to prepare a timetable for the introduction of intelligent metering systems.

In the case of electricity, at least 80% of customers should be equipped with smart meters by 2020, pending a cost-assessment study.

The Energy Performance of Buildings Directive, adopted in November 2009, requires member states to develop national plans to install smart meters (EurActiv 18/11/09).

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