Worldwide smart metering research project
November 4, 2011
A new report commissioned by The European Smart Meter Industry Group (ESMIG) shows that after an independent review of 100 smart meter pilots and roll outs across the world, smart metering installations could cut UK households electricity bills by £938M a year.
The report identifies the kinds of activities and technology that are needed to maximize the customer and industry energy saving benefits from smart metering. It shows that, if the technology and customer engagement is correct, hundreds of millions of pounds could be saved by consumers in Britain every year, and that smart meters could make a significant contribution towards achieving EU goals of a 20% reduction in energy use by 2020.
The report also demonstrated:
• significant reductions in the amount of energy used by consumers and when they use it,
• worldwide, customers who received an energy display with their smart meter achieved on average an 8.5% reduction in the amount of electricity they used.
• This level of saving across UK households would equate to £938 million cut from electricity bills,
• lower but still significant reductions were achieved from enhanced bills showing detailed energy usage and web based displays,
• different pricing structures and automation were effective in encouraging customers to use energy at off-peak times and reducing overall energy use when used as part of a well designed consumer engagement and education programme.
Technology was identified as the key to enable consumer benefits. The success of pilots and roll outs and the savings customers made, varied depending on socioeconomic factors, consumers’ consumption patterns, rollout program content and structure, and what customers were using energy for.
The report also found that if smart meter rollout is to maximize energy efficiency savings to customers that consumers will need to have access to good-quality support, advice and education.
The study identified that what customers valued most and responded to best was an in-home display which shows them: up to date consumption information (i.e. how much energy they have used between the last bill and now); up-to-date cost or bill (i.e. how high is their bill since they last paid); and historical consumption (i.e. how much electricity have they used during this period compared to the previous periods) in a format they can understand.
