Rising prices and government initiatives raise awareness

Last Updated (Monday, 25 May 2009 00:12)
Written by Administrator
Monday, 25 May 2009 00:07

Rising energy prices and recent government initiatives are making energy consumers more conscious about how much power they use and how they are using it.  Residential and business consumers are latching on to the idea that smart meters can help them conserve energy and save on their electric bills.

Smart meters allow users to precisely monitor and manage their consumption.  The money-saving devices have been proven to conserve water, natural gas, and electricity.  Consumers gain perspective on how they are using energy – and how much that consumption costs in real time.  Smart meters also develop a historical record of energy consumption were consumers can find patterns over time, and make adjustments accordingly.

A challenge has been how to implement part L of the UK Government’s Building Regulations Act which requires that energy consumption be accurately measured.  But with the British government’s recent announcement to install smart meters in more than 26 million UK homes it seems the answer has been found.

The underlying assumption behind a smart meter is that consumers will more actively participate in energy conservation measures if they have the ability to determine the price of energy.  Without these devices installed it is impossible to determine how much energy usage costs at a specific point in time.  Even when the monthly bill arrives, only the most dedicated could determine how much it cost to use energy on a given day.

Conventional meters only allow for physical meter reads by the energy supplier.  Most often energy usage is estimated because the meter reader was unable to approach the meter.  This has resulted in rampant inaccuracies throughout the industry - causing headaches for consumers and clouding the ability for utilities to maximise their revenue streams.

Business energy customers can operate more efficiently with a smart meter.  By monitoring the device, they can more accurately determine how much the energy bill will be for the month.  Business decision-makers can make energy-saving adjustments should prices rise.  For example, motion sensors could be installed that automatically switch off lights when nobody is present within a room.  

Utility companies, obviously, get a better handle on their business costs.  An added benefit is the elimination of human meter reader crews.  Meter readers not only require labour wages but also fossil fuel-consuming vehicle fleets to make their rounds.  Reassigning meter readers to an in-house position reduces the utility’s carbon footprint as a result.  Estimated billing would be eliminated forever as smart meters are able to precisely determine how much energy was used and automatically transmit that information to the energy provider.

As smart meter technology becomes more advanced consumer freedom of choice becomes more pronounced.  Consumers can monitor energy prices offered by competing providers using the Internet and switch providers should the price warrant a change.

Questions remain as to how Britain will install all these smart meters.  Energywatch, a consumer advocate group, believes energy suppliers should install smart meters should be installed as part of regular meter replacement programmes.  Debate also continues over how the massive project will be paid for.

Utilities want to keep customers from switching suppliers to avoid paying for the cost of a smart meter after it is installed.  Competition is open within the UK utilities industry, with consumers often having a choice between multiple suppliers.

In France and Italy smart meter adoption has been more uniform.  In these countries the utility industry remains highly regulated where a state supplier is responsible for most, if not all, energy consumers.  Enel, the national Italian utility, has installed more than 30 million smart meters over the past 8 years.  In France, ERDF began a massive smart meter effort that will eventually see 35 million of the devices installed there.