Which? Warning Over Smart Meter Costs

The Government has been warned over the potential cost of installing energy smart meters "spiralling out of control".

Consumer group Which? has told Energy Secretary Ed Davey action must be taken ahead of the official roll-out next year.

The £10.9bn programme is designed to fit smart meters in every UK home before 2020, to help people control their energy costs.

The call comes after the public spending watchdog said the project would cost each household £215 over a 15-year period but only cut energy consumption on bills by 3% per annum by 2030.

Westminster's Public Accounts committee estimated an average saving of 2% until 2020, rising to 3% a decade later - calculated at cutting bills by £43 a year.

Which? Said there should be centralised procurement for suppliers for the expensive meters and it wants a more efficient approach to installation in multiple occupant buildings, to reduce cost and disruption.

The present system means suppliers are required to take 'all reasonable steps' to install meters in every home by 2020, but Which? said the phrase lacks definition.

Which? executive director Richard Lloyd said: "Without immediate action the cost of the smart meter roll-out is in danger of spiralling out of control, while consumers foot the bill.

"The energy market is undergoing a full scale investigation, so the Government cannot expect competition alone will keep costs low.

"Major reforms are needed to fix the 'big six' and restore trust in this broken market."

But some consumers who have been trialling the smart meters, say once installed, awareness is improved on energy consumption.

"The installation was very straight forward, I just needed to spend some time learning how to use my display," Londoner Dariusz Bogal, who is trialling a British Gas meter, said.

"The display shows your gas and electricity use in near real time so I can easily see which appliances around the house are pushing my costs up and where I need to keep an eye on how much I'm using."

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