Smart meters in all UK homes by 2020

Smart meters are to be installed in every UK home by 2020 at a cost of £9 billion.

The government hopes to cut Britain’s carbon emissions by up to a third through the scheme.

Smart meters feedback real time energy usage figures to energy companies, enabling them to send accurate gas and electricity bills, in contrast to the current system where the bill is estimated based on average monthly energy use.

The meters also give households real time data on the cost of the energy they are using, so they can make informed decisions about reducing the number of energy drains in their home.

“Smart meters will empower all consumers to monitor their own energy use and make reductions in energy consumption and carbon emissions as a result,” said climate change secretary Ed Miliband.

“This is a big project affecting 26 million homes, and several million businesses, so it’s important we design a system that brings best value to everyone involved.”

Under government plans, households will foot the bill for the meters, with an estimated total cost of between £7 billion and £9 billion, or between £269 and £346 per household.

However, the Energy Retail Association said the cost savings made by installing the meters will make them ‘cost-neutral’ overall.

The government estimates that households will save around £4 per year from the meters, while energy companies said that they will be able to provide cheaper energy due to reduced operating costs.

However, at that rate, it would be nearly 70 years before smart meters are truly ‘cost-neutral’.