British Gas Steams Ahead With Energy Metering

Utility supplier British Gas has decided to press ahead with its aim to install energy meters even though government trials have yet to be completed.

It may sound strange that a company is rushing to cut its income – rather like a turkey that was looking forward to Christmas emigrating to the US in time for Thanksgiving. However, as in the case of the turkey, the endgame is inevitable.

Savings Lack Power

The Department of Energy and Climate Change (DECC) is committed to cutting the national energy bill, backed by directives from the European Commission. The path is set, but some ironing out of the standards used is required.

The meters monitor energy consumption in real-time and send data directly to suppliers over wireless networks. At the same time, a monitor in the home shows the householder exactly what they are using, encouraging them to switch off power-hungry appliances.

The programme was expected to benefit society by creating 2,500 jobs and reducing the annual national utility bill by over £1 billion per year by 2020. This assumed an annual saving of three per cent or the equivalent of the output of four power stations. Carbon emissions would be five million tonnes lower.

The reality from the government trials is proving to be somewhat different.

Savings exaggerated?

DECC initially claimed that the devices could save householders 10 percent on their energy bills, approximately £100 a year for the average family. Officials have since admitted that savings would be far lower but have yet to put a figure on this.

British Gas says it wants to help the environment but there is also a commercial precedent. The company could benefit by installing as many meters as possible and claiming the higher ground when it comes to establishing standards for the wireless transmissions.

It could also begin engaging with its customers on ways to save energy, thereby building up customer loyalty – a priceless attribute in these days of utility supplier switching.