Energy companies are trying to block a government proposal to install devices at residences that would cut the average annual energy bill by £130. The Energy Retail Association (ERA), which represents British Gas, EDF, npower and the other main suppliers, is lobbying with ministers against the idea of installing a £15 digital display that would give details of the cost of energy, reported Times Online.
These wireless displays can be moved anywhere in the home and would allow people to compare the energy usage of different devices, thereby cutting down on their energy bills.
The Local Government Association (LGA) has accused the companies of trying to block a policy proposal that would not only give people informed choice, but also improve environment with huge reduction in carbon dioxide emissions.
The government has promised to install smart meters in every home by 2020, which will use the mobile phone network to send usage details back to the companies. It will save the companies £306m a year in meter-reading costs and make it easier for them to reject customer complaints about overcharging.
Joel Hagan, chief executive of Onzo, said:” We need smart meters in the UK because they will enable more accurate and more frequent billing, the cost of the billing process will be reduced, and they will also make it possible for consumers to access information that will help them understand and change their energy use.”
He further adds,“ There should certainly be an obligation on suppliers to provide information to consumers on their energy use. There are various channels: real-time information suits a dedicated display; community information and the ability to analyse data suits the web; alerts suit SMS; historical information suits a printed format; etc. but, if you had to pick one channel to mandate, then it would be the energy display, because of its effect (5% to 20% savings) and the fact that it can be deployed to everyone.”
The obligation to issue displays with every smart meter, is the bone of contention between ERA and government. A spokesman for ERA said that its members wanted to be allowed to give information about usage to customers in various ways, including e-mail and text message, and do not want to be restricted to providing a one-size-fits-all solution.