In May 2009 the government announced the initiative of rolling out Smart Meters to all domestic households and businesses across the country. Smart Meters are electronic devices that record energy consumption on a set interval period, this normally being hourly. Energy reports that monitor and record your usage are sent back to your utility company on a daily basis. This will subsequently mean that there will no longer be predicted bills and will it will lay the path for completely accurate billing.
The roll out will be a major national project that will involve replacing close to 53 million gas and electricity meters over a period of 8 years. The initiative has been put in place to give power back to the consumer. The inevitable hope is that it will drive businesses to be much more energy effective and wary of their usage as it will give the companies the ability to see near-live energy usage.
One of the main benefits to your company is the monetary savings that can be achieved through the awareness of your energy usage. Many organisations are not aware of when they are using their energy and to what extent they are wasting energy. The Energy Savings Trust says that the use of Smart Meters can help change the perception and behavior around consumer’s usage. They also point out that international evidence shows that there are saving to be made of between 5% and 15% of energy bills. It is expected that £4 billion of the expected £6.4 – £6.8 billion worth of savings will come through reduced energy consumption.
Smart Meters will revolutionise the way that businesses pay for their energy. Increasingly consumers/businesses have been losing trust in the energy supplier’s payment methodology, as they felt inaccurate billing payments were effectively providing the suppliers with free loans. Smart meters provide accurate readings back to energy suppliers typically at half hour intervals on a daily basis. The days of predicted usage and billings will cease to exist.
In an age where cash flow is being scrutinised even more and cash is considered king, forking out thousands of pounds in predicted bills and then waiting to claw that money back could be the difference in a company closing down or not.
Streamlined energy plans
The data that is fed from Smart meters will not only produce more accurate billings, but will also allow more effective billings tariffs to be developed dependent on your usage. The data will allow the suppliers to understand how much energy is being used and when it is being used and this will allows for streamlined tariffs to be developed for individuals’ usage. The current system that is in place is predominantly dependent on quarterly readings that are using a day/night usage. With the introduction of Smart Meters and half hourly data being recorded, this will allow for more structured tariffs around the customers type of business and their energy needs.
Saving your time and the planet
It is estimated by the Department of Energy and Climate Change (DECC) that Smart Meters could save 34 million tons of carbon dioxide emissions over 20 years. These savings will come from a number of different areas. One of the key conveniences will be the removal of site visits to record energy usage. This will drastically reduce carbon emissions, as the use of cars will no longer be required to record your energy usage. The education of businesses around their usage will also significantly reduce the amount of carbon that is omitted into the environment. Smart Meters will provide a business with the tools to streamline energy usage and this is expected to drastically reduce the amount of carbon that is produced through less production.
The current market is filled with different types of pricing strategies for the installation of Smart Meters. Some suppliers will offer a free installation but the reality is the costs are hidden in your post contract rates. We strongly recommend that before entering into any agreement to have a Smart Meter installed you fully understand the terms of the agreement.
Please contact Senco Energy to speak to one of our friendly advisors to help you approach this conversation in the right way. If you do not have the time to contact us, please use the questions below to ensure you are fully equipped for the conversation with your current supplier.
- What are the cost implications to me when I have a Smart Meter installed?
- What costs are absorbed into my energy payments?
- What happens when my current contract ends? Who takes over the cost of the Smart Meter?