To ignore the wider potential of smart meters is to deny a technology that could be genuinely transformational
John Vidal's blogpost ? Why smart meters could make power firms richer ? raises some interesting questions about the smart energy revolution.
Broadly speaking, Vidal highlights three areas of concern: that the smart meter roll-out will ultimately be ineffective in changing behaviour, will disproportionately penalise those at the margins of society, and will open the way for unscrupulous practices.
The argument that smart metering won't actually have any effect is perhaps the most important. As the article notes, there is uncertainty surrounding the reductions smart meters will deliver, particularly when deployed en masse. While the government's assumption is of savings between 2-3%, Landis+Gyr's experience is that deployments that have focused on encouraging energy budgeting have delivered usage reductions of 10-15%, even with relatively unsophisticated capabilities. At that rate, the savings across the UK ? both in pure cash and energy generation terms ? are well worth fighting for.
Vidal's concern that smart metering will disproportionately penalise the vulnerable is absolutely understandable, but also fails to recognise the progress that has already been made. The government has paid great attention to ensuring that the cost of serving these sections of society will be no different to those of the wider population. This is in stark contrast to the current situation and will be a very significant improvement for those individuals who need help the most.
He writes: "In the name of saving energy and emissions they [energy companies installing smart meters] have indicated that they plan to charge more at peak times and less at night or times of low use." But this is not bad ? it is common sense and represents the only viable means of managing the integration of intermittent power sources such as wind and solar. The current system, where people have no ability to accurately track (and thus control) their energy spend cannot be a better solution.
The feedback that we are receiving from consumers both in the UK and globally is that they value the detail that smart meters give them and want to use that information in order to reduce their bills and get more for their money ? just as we do today with supermarket loyalty cards. But this does not mean that utilities will be able to make use of detailed consumption data without the consumer's involvement or agreement, as Vidal fears. The latest government response suggests that the standard meter reading frequency will be monthly and that additional data will be generated only with the customer's agreement. Compare that to the real-time information available to every bank through debit and credit card transactions and it's clear that smart meters create no additional risk.
Of course, all of this is simply to focus on the negatives. There are plenty of important benefits. For the consumer, smart metering will spell the end of estimated billing and will underpin the mass deployment of both electric vehicles and microgeneration technologies. For the industry, it will allow the integration of renewable energies such as offshore wind, solar and marine. Perhaps more significantly, smart metering represents one of the best devices we have for driving consumer engagement. Much of the current carbon reduction agenda is at a corporate or governmental level, smart metering is one of the few programmes that allows individuals to really play their part.
Just as with other major consumer engagement projects ? decimalisation, the internet, chip and PIN ? there have been ? and will continue to be ? teething problems. But to focus on these and ignore the wider potential is to deny a technology that could be genuinely transformational in its impact on the UK's emerging green economy and, indeed, society as a whole.
? Steve Cunningham is the chief executive of Landis+Gyr UK & Ireland
Source: http://www.guardian.co.uk/environment/2011/apr/13/smart-metering-negatives
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