Smart Meters - NAO Cost Review

Legacy_user

It was announced in mid January that the NAO is conducting a further review into the UK’s smart meter programme. It will report by the Summer.

This study will:

Assess the current economic case for the rollout of smart meters;

Look at whether the government is on track to achieve its target to rollout meters by 2020; and

Consider whether the government is maximising the chances that smart meters will achieve their intended long-term benefits. The study follows up two previous NAO studies on the rollout, which published in 2011 and 2014.

For anyone wanting to update themselves on the current state of play re smart meters, this is worth a read:

http://researchbriefings.files.parliament.uk/documents/CBP-8119/CBP-8119.pdf

kevpc

Am I right to understand that smart meters tell you what is using energy, when? If so, how can it save you money if the items using the energy need to be on? Surely these meters are just another step on the 'big brother is watching you' ladder! Dont trust them at all! Whatever the reason, it'll end up being detrimental to customers. As soon as we start saving money because of using less energy, more will be charged for what we are using! There's no way that any company or upper management is going to take 'a pay cut'!

[Deleted User]

kevpc wrote: »

Am I right to understand that smart meters tell you what is using energy

No, the meter cannot tell what is using the energy. It just reads the meter and sends the current reading to the supplier every 30 minutes or daily or monthly (depends on the supplier).

System

kevpc wrote: »

Am I right to understand that smart meters tell you what is using energy, when? If so, how can it save you money if the items using the energy need to be on? Surely these meters are just another step on the 'big brother is watching you' ladder! Dont trust them at all! Whatever the reason, it'll end up being detrimental to customers. As soon as we start saving money because of using less energy, more will be charged for what we are using! There's no way that any company or upper management is going to take 'a pay cut'!

Google Smappee if you are after detailed device usage information.

LewisHamilton

kevpc wrote: »

Am I right to understand that smart meters tell you what is using energy, when? If so, how can it save you money if the items using the energy need to be on? Surely these meters are just another step on the 'big brother is watching you' ladder! Dont trust them at all! Whatever the reason, it'll end up being detrimental to customers. As soon as we start saving money because of using less energy, more will be charged for what we are using! There's no way that any company or upper management is going to take 'a pay cut'!

This has to be one of the most uneducated and misleading theories I have read about Smart meters to date.

Whilst I don't intend to get a Smart meter at this present time, until the teething problems are sorted, there are many potential benefits to the industry for customers with Smart meters.

(1) Thousands of customer's receive large catch up bills that cause them significant financial strain, worry and problems for many years. More often than not these catch up bills are due to many years of experiencing estimated bills. Whilst these customers can prevent estimated bills by simply supplying regular readings, a lot of customer's do not because they are not fully aware of the consequences of or have experienced the effect of having their energy usage estimated for many years. With Smart meters sending regular readings to the supplier, the supplier can send accurate bills and not estimated bills each quarter/month. These regular accurate bills can prevent a signifcant build up of debt on a customer's account along with more regular accurate reviews of the direct debit. Regular accurate bills also brings to the customer's attention the amount they are 'actually' using, which in turn can motivate the customer to be more energy efficient.

Catch up bills can also sometimes result in the energy suppliers writing off unbilled energy that is over 12 months old if the supplier is at fault for not sending an accurate bill for over 12 months. The true cost of this is not on the supplier, but those that pay their bills on time through price increases.

(2) Thousands of customer's in the UK steal gas and electricity and the only people that suffer again are those that pay the bills as the supplier's simply pass on the value of stolen gas and electricity onto customer through price increases. Smart meters can detect potential stolen gas and electric easier and quicker than the current meters. Surely a benefit for the responsible paying consumer

(3) A lot of customer complaints surround incorrect transfer readings not being passed on by the new supplier to the old supplier causing inconvenience and unnecessary hassle through the Agreed Reads Dispute process. With Smart meters and more historical data on the households usage, the Agreed Reads Dispute process can be resolved quicker and also there will be a reduction in this issue actually occurring in the first instance as readings would be retrieved on the day of the actual transfer. Surely a benefit for the reasonable consumer in the market.

(4) Smart meters come with an in home display that can allow the consumer to see how they are using the electric or gas. This can help the customer reduce costs as they can see when they are using the most energy. Yes in the first instance the consumer has to use the energy but it can help a consumer long term become more energy efficient. Also the in home display is also a gadget that some people might find interesting regardless as to whether or not they want to cut down on their usage.

(5) Smart meters can help tenant's with dishonest landlords, and vice versa, with disputes surrounding change of occupancy readings. Can only be a benefit for the reasonable consumer in this scenario

(6) Smart meters will no doubt improve over the decades that will give customers even more detailed usage about their energy use etc

In summary, your points couldn't be any further from the truth surrounding the intentions and potential benefits of Smart meters.

The only consumers that should in reality dislike Smart meters are those that fudge their readings or steal gas and electric or are wilfully avoiding paying for their energy........