There is a considerable amount of debate about who benefits from the roll out of smart meters, as required by EU legislation. Terry Macalister writes in The Guardian about an analysis in the UK showing that the net benefits of technology which is meant to give consumers more control over energy are reduced from £8.3bn to £6.2bn. Are there other such analyses available?
Smart meter benefits lower than promised, warns National Audit Office
The National Audit Office warned on Thursday that the net benefits of the government’s smart meter programme to be rolled out by 2020 has dropped by more than a quarter from previous estimates two years ago to £6.2bn.
This primarily results from a year’s delay in the rollout of technology which is meant to give more control to consumers to help them find ways of tackling soaring power bills by allowing them to be more aware of their power use.
The NAO report for the Committee of Public Accounts says the benefit cost ratio of the programme to 2030 remains at £1.60 of advantage for every £1 spent but highlights other problems.
It is concerned that the current network radio system needed to work with the smart meters is not suitable for 30% of homes in Britain while in addition some energy suppliers have not yet developed the pre-payment systems needed.
“The risks also include customer resistance to the installation of smart meters (and) the need for suppliers and others in the industry to resolve outstanding technical issues,” said the financial watchdog.
Margaret Hodge MP, chair of the Committee of Public Accounts, said it was clear the Department of Energy and Climate Change could not afford to relax if it is to have smart meters in every home by 2020 and make sure it secures the financial benefits.
“The department and Ofgem must stay on top of the situation to make sure that competition between energy companies actually protects customers from extra costs – especially given that the industry has already been referred to the regulator on exactly this matter,” she said.
She added: “Given that householders are already paying eye-wateringly high utility bills, I am frustrated the department does not have a better idea of how much smart meters will help those in fuel poverty –those who need help most.”
Energy in Demand - Sustainable Energy - Rod Janssen 
It is frightening how the estimates of the initial costs of installing “smart meters” in every British homes has escalated, from an initial £6bn to approaching £15bn. It is equally frightening that the preferred model meter provides no more information to the consumer about which household items precisely are causing the meter to tick over at any given time, than the familiar old meters initially installed in the 1950s.
I’m sure it isn’t only in the UK. My brother was saying in Canada one of the problems is the quality of the meters and this is affecting the credibility of the entire effort. There is an issue of the information from the meters and explaining to consumers how – if they can – react to it. Nothing is obvious and nothing should be taken for granted.