Energy suppliers will be responsible for installing ''smart meters'' for gas and electricity in all homes by 2020 under final plans for the scheme published by the UK Government recently.
The UK Department of Energy and Climate Change said the smart meters, which enable power companies to take readings remotely and will spell the end of estimated billing, will save consumers money, make electricity use more efficient and cut carbon emissions.
The new meters will send information on real-time electricity and gas use in households and small businesses direct to utility companies, eliminating the need for customers to stay at home for meter readings or to receive over-estimated bills. However, consumers are likely to pick up some of the costs of the compulsory, nationwide scheme.
The UK Government estimates putting smart meters in Great Britain’s 26 million homes could save customers and energy companies £2.5bn-£3.6bn over the next 20 years, but says it will cost more than double this to buy and install the equipment.
Welcomed by energy companies for bringing energy into the 21st century, the scheme will inevitably mean that traditional meter readers are exempt from use, resulting in job losses for employees who are currently employed to check them.
According to British Gas however, the energy saving scheme is predicted to create 2,600 new jobs for the company by 2012.
Further fears have been raised that while the scheme will be cost effective for energy companies, the multi-million pound bill for the ten year project will be fuelled by a rise in electricity and gas prices for consumers.
Mark Todd from the UK firm Energy Helpline, a company that provides gas and electricity price comparisons for consumers says: “In order to maintain public support suppliers must show that smart meters will drive bills down, not up. With unemployment still increasing and the recession continuing to bite, customers need energy price drops - not price rises“.
UK Energy and Climate Change Minister Lord Hunt said: ''Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills.
Smart meter trials are already under way around the country through energy companies including British Gas and Npower, and smaller suppliers such as First Utility already supply smart meters as standard. The first smart meters installed under the government's new plans are expected to arrive in 2012.