Smart Meter madness (Part 2)

(By Anthony Miller – Sunday 9th May 2009 6:30pm). It looks like the government is really serious about plans to install ‘smart’ gas and electricity meters in all UK homes (see Groundhog decade - will ‘Smart Metering’ be the next NPfIT?). But an article in this weekend’s FT (see here) reveals the plan in its true colours – a ruse to increase electricity prices: “Smart meters use information technology to collect detailed data on energy use. They offer the potential for significant savings, in particular by allowing suppliers to charge more for electricity at times of peak demand.” Frankly, my energy supplier hasn’t needed to install any fancy meters to raise their gas and electricity prices!

The reasons that the FT gives as to why ‘smart meters’ will be a good thing for consumers just beggar belief. For example, “Smart meters could also help with the introduction of electric cars, as they could charge the cars at night.” I didn’t realise it was only possible to charge electric cars in daylight hours, but there we go. Or, smart meters “could link up with “smart appliances”, such as a freezer that can automatically be switched off at peak times”. I think this is called a timer. And there is no evidence given for the assertion that smart metering is necessary to allow greater use of ‘renewable’ sources such as wind farms, or indeed whether the ‘greater use’ is actually material. All these ‘benefits’, by the way, depend on us having a ‘smart grid’ which I would doubt is included in the mooted £7bn ‘smart meter’ roll-out cost.

In any event, I am still of the view that the forecast roll-out cost will, as ever, turn out to be a huge underestimate – paid for by the tax-payer – and will only have the net result of pushing up the price we all pay for energy. Oh, and according to the article, “The industry has strongly backed the introduction of the meters. Suppliers expect to save money by putting an end to meter readings and estimated bills.” Hmmm – so the suppliers reduce their own costs and increase their prices – and we fund it. Why should we possibly be upset about that?