Smart meters - Commons Library Standard Note

Between now and 2019 more than 50 million new ‘smart meters’ are being rolled out to 30 million homes and smaller businesses in Britain. These smart meters, with in-home-displays, are intended to allow consumers to see and adjust in real time what energy they are using.

Ofgem considers that smart metering could “transform how energy markets operate”. The Government estimates that over the next 20 years, the rollout of smart meters will deliver over £7 billion net benefits to consumers, energy suppliers and networks. Since around 2010 DECC and Ofgem have been working on a rollout programme. The National Audit Office (NAO) and the Public Accounts Committee (PAC) have raised concerns about the ambition of the programme, its risks and the extent of the potential benefits to consumers. The PAC considers the challenges associated with roll-out ‘huge’.

Issues of concern to constituents include the extent to which smart meters will be mandated, consumer protection during the installation process, and concerns about privacy and access to smart metering data. It has been decided for example that suppliers’ codes of practice should ban verbal marketing activity without prior consent during installations, with a complete ban on completing any sales. It is proposed that in general, energy suppliers should be able to access consumption data on a monthly basis, with a clear consumer opt-out for daily access and an opt-in for more frequent access. Concerns have also been raised by some groups about health effects from smart meters.

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