Gas and electricity smart meter rollout delayed until 2015

The Government's £11.7 billion project to put gas and electricity smart meters in every home has been put back until autumn 2015.

The Government aims to put 50 million smart gas and electricity meters in 30 million UK homes and businesses. This project was initially set to start rolling out in mid-2014.

However, in response to industry concerns surrounding the design, testing and manufacturing of these monitoring/communications devices, the project has been put back until the autumn of 2015.

Thanks to this delay, UK-wide installation is not expected to be completed before the end of 2020, which is more than seven years away.

How smart meters work

Smart meters use specialist software to cut energy bills by showing users exactly how much gas and electricity they consume.

The great advantage of smart meters is that they would bring an end to estimated bills, because they transmit accurate meter readings to energy companies on a daily basis. This data is transmitted via wireless broadband. Then again, privacy advocates have warned that these wireless devices could prove a privacy risk by 'leaking' data to unauthorised sources.

Of course, there's no use in introducing smart meters into every home if they don't work as they should. For this project to be successful in reducing energy consumption, the complex nationwide installation must proceed smoothly. Alas, government-backed schemes have a poor track record in this respect.

Who pays? You do, of course!

Some energy suppliers have already started installing smart meters in selected homes, but most are relieved to be given an extra year's grace. What's more, energy companies will bear the cost of installing smart meters in every home and, of course, won't hesitate to pass on these costs to their customers.

With the total bill estimated at £11.7 billion for 50 million meters, this averages out at £234 per meter. For homes being supplied with both gas and electricity, the cost could be £468. For businesses with multiple energy supplies, the total cost could amount to thousands of pounds.

Therefore, it is almost certain that suppliers would recoup this cost though higher energy tariffs in future.

How you can save energy now

Studies have shown that the real-time information provided by smart meters helps households and businesses actively reduce the energy they consume. It also guarantees more accurate bills, thus reducing 'bill shock' for users.

But you don't have to wait seven years to get cheaper, more accurate energy bills

1. Switch suppliers

When it comes to gas and electricity, forget about being loyal to any supplier. Instead, you should shop around online to find the best-value tariffs.

2. Grab discounts

To minimise your energy spending, bag as many discounts as you can, such as paying by Direct Debit, getting money off with dual-fuel deals, paying less for paperless/online billing, and so on. Taken together, these discounts could knock 10% to 15% off.

3. Don't waste energy

Reading your meters regularly (monthly or quarterly) will help you to monitor your energy spending and forecast your future bills. This is quick and easy to do online, or by using free apps from energy providers.

In addition, take common-sense steps to avoid needless energy wastage. Switch off appliances, rather than leaving them on standby. Use low-wattage halogen or LED light bulbs that use maybe a fifth (20%) of the energy of tungsten-filament lighting. Likewise, don't leave lights and appliances on in empty rooms. Finally, don't boil a full kettle of water to make one single cup of tea!

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