Summary of Smart meters a waste of money, say MPs
The Public Accounts Committee reports that smart meters will only save consumers 2% (£26) annually, contradicting the Department of Energy and Climate Change's claims. While ministers argue the rollout revolutionizes energy infrastructure and enables easier switching, critics note savings depend on behavioral changes despite a £10.6 billion installation cost charged to households.
Parts used in the Smart Meter Rollout:
- Smart meters
- UK energy infrastructure
- Smarter electricity grids
Smart meters will only save 2% on consumers’ bills – an average £26 per household per year – according to the Public Accounts Committee (PAC) – a committee of MPs – which disagrees with the opinion of the Department of Energy and Climate Change (DECC) that smart meters will lower bills and make switching easier.
“Smart meters put power into the hands of consumers, bringing an end to estimated billing and helping people understand their energy use,” said energy minister Baroness Verma.
“The nationwide rollout is part of the government’s complete overhaul of the UK’s energy infrastructure which will revolutionise the market and support the development of smarter electricity grids. It will help reduce consumer bills, enable faster, easier switching and give households control at the touch of a button.”
Not so, according to the chair of the PAC, Margaret Hodge. “Despite consumers footing the bill, they can on average make a saving of only 2% on the average annual bill of £1,328 by the time the roll-out is complete,” said Hodge. “Even this is conditional on consumers changing their behaviour and cutting their energy use.”
Installing the meters will cost £10.6 billion at an average of £215 per household.
For more detail: Smart meters a waste of money, say MPs
- How much will smart meters save consumers annually?
Saving is an average of 2% or £26 per household per year. - What is the total cost of installing smart meters nationwide?
The installation costs £10.6 billion. - Does the Public Accounts Committee agree with the government on bill savings?
No, the committee disagrees with the Department of Energy and Climate Change opinion. - Is the average annual bill amount for a household specified?
Yes, the average annual bill is £1,328. - What condition must be met for consumers to achieve these savings?
Consumers must change their behavior and cut their energy use. - Who is responsible for covering the cost of the meters?
Households will be charged extra to cover the cost of the meters. - What does the energy minister claim smart meters will do?
They will end estimated billing and help people understand their energy use. - What is the average cost per household for installing the meters?
The average cost is £215 per household.
