We’re shown smart way to save £50m

Mar 18 2008 by Tony Henderson, The Journal

HOUSEHOLDS in the North East could save nearly £50m a year and cut carbon emissions by 300,000 tonnes by switching to smart meters, says new research.

It reveals that eight out of 10 people don’t know what they are paying for their gas and electricity and find that energy bills are the most difficult to understand of all household bills.

The research, commissioned by the Energy Saving Trust, finds that almost half of respondents would be interested in having a smart meter and 96% of those would use the device to help cut their home energy use.

Smart meters – advanced electrical meters – allow householders to monitor how much their energy use costs the environment and their pocket.

They can also tell instantly which household appliances are costing the most money to run.

Trials have shown that householders who use smart meters can reduce their energy bills by between five and 10%.

Steve Hunter, director of the North East Energy Saving Trust advice centre, said: “Our study finds that energy bills are the most difficult to understand of any household bill – twice as hard as phone bills and four times as difficult as bank statements or credit card bills.

“The lack of transparency surrounding energy usage is one of the biggest problems holding back the UK’s fight against climate change and without the uptake of smart metering, this situation is not going to change any time soon.

“The current situation is hard to believe, especially with the recent rise in household fuel bills.

“Most people would never sign a mobile phone contract if they didn’t know how much it would cost for calls.

“Similarly, you wouldn’t shop every week and then get the bill three months later and just hope you could pay for it.

“Smart meters help householders work out how much energy they are using and how much they are paying for it, as well as showing in real time which appliances are producing the most carbon dioxide.”

The survey found that if people had a smart meter, 86% would turn their thermostat down by one degree, 81% would turn lights off when not used in rooms, and 76% of people would turn the television off standby.

Of those surveyed, 32% find their energy bill hardest to understand compared to water bill 19%; phone bill 16% credit card statement and bank statement 8%; cable bill 7%.

In addition, 54% of people said they were interested in a smart meter so they can get accurate bills instead of estimated usage.

Mr Hunter said: “While the Energy White Paper outlined the need for energy suppliers to make better displays available to households free of charge on request, we would like to see the Government act and offer the support necessary to enable smart meters to be rolled out across the UK.”

Smart meters would cost between £100 and £200 if mass-produced.