According to a new report from British Gas and Oxford Economics, the UK could benefit by up to £14 billion by 2030 as a result of smart meter rollouts.
The benefits and costs of smart meters from 2012 to 2030 are analysed in the report, and the findings show that whilst the national rollout to all homes and businesses in the country will cost £11.5 billion, the benefits of smart meters could amount to £25.3 billion – a net gain of nearly £14 billion, and a saving of around £65 on the average household energy bill.
The key benefits are:
- £11.2 billion from consumer energy savings, resulting from greater control and understanding of energy use
- £10.7 billion from efficiency savings for energy suppliers, with the savings passed on to consumers because of the highly competitive nature of the market
- £3.2 billion from generation related savings, due to the lower energy demand.
“Smart meters are good news for households, businesses and Britain – they are fundamentally changing how we use energy, bringing billions of pounds worth of benefits to Britain,” said Dean Keeling, managing director of British Gas Smart Homes. “The facts are plain: smart meters will help people save energy putting money in their back pocket.”
£21.8 billion of the savings will come from households and £3.5 billion from small businesses. The smart metering costs are those from the Department of Energy and Climate Change (DECC).
The calculation for consumer energy savings was based on a “conservative” 5 percent reduction in electricity and gas use by residential consumers and just under 5 percent for businesses.
The figure of almost £14 billion in net benefits is almost double the £7.2 billion benefit estimated in the DECC’s latest impact assessment. However, a detailed comparison will be necessary to determine where the assessments differ.
The government requires all home and businesses to install smart meters by 2019. Over 600,000 smart meters have so far been installed by British Gas.