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Smart meters will only save £26 a year on energy bills


Smart meters, which are due to be installed into every home in Britain by 2020, will only save consumers 2%, or £26, on their annual bills.

The Public Accounts Committee, a committee who look into parliaments spending, have advised that even though the smart meters may help consumers reduce their energy consumption, they will only save 2% on their bills annually. Installing the meters will cost £215 per household, £10.6 billion overall, and homes will be charged an annual cost on their bills of about £11 to cover this.

The smart meters have a screen advising consumers how much energy they are using at any given time, and how much it is costing, which will hopefully encourage consumers to use less electricity and gas. There are fears that the technology may be out of date by the time they are installed, because as technology advances, it may be quicker and more convenient for consumers to access this information on their smartphones or other similar devices.

The smart meters have had a controversial beginning, with EDF Energy, ScottishPower and npower calling for a review the meters in early 2014, stating the cost to consumers would be £1.8 billion. This, they said, was due to the "ambitious" deadline of every household and the cost of the in-home displays.
Margaret Hodge, MP and Chair of the Committee of Public Accounts, today said:

“Some aspects of the Programme could be out-of-date by the time it is rolled out. Energy suppliers will be required to offer in-home displays, even though customers may not want or use them. Consumers will have to pay for them even though they might already be out of date.

The Department must monitor progress, costs and benefits during roll-out to identify whether changes are needed to secure the delivery of smart meters at minimum cost to consumers.”

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