Households kept in the dark about smart meters
The £11 billion roll-out of smart meters into over 30 million households and businesses in the UK is in danger of falling flat on its face, according to new research by uSwitch.com.
Despite the fact that smart meters are already appearing in homes and that some of the key benefits of the new technology rely on people changing their behaviour, consumers are being kept in the dark about the scheme. Less than half (45%) know what a smart meter is while a third (35%) have heard of smart meters but have no idea what they do.
The smart meter roll-out is expected to be a game changer for the industry and for customers. However, there has been little or no official communication about the scheme, leaving consumers to pick up knowledge as and where they can. Of those who have heard of smart meters the majority, 52%, name the media as their main source of information. Less than two in ten (19%) say that their supplier has been the main source, while just 14% have received information about smart meters from their energy supplier in the last 12 months.
As a result of this information gap, less than two in ten people (19%) are completely happy with their current level of knowledge. More importantly, they are being left unaware of the benefits of smart metering. One of the main ways in which smart meters will help consumers is by allowing them to understand their energy usage better, which will enable them to make changes that will cut their energy bills. Just 44% of consumers are aware of this core benefit. Almost two in ten (17%) see little or no benefit to smart meters, while only a third (35%) identify accurate energy bills based on up-to-date readings as a core benefit.
While unaware of the benefits, consumers are aware of the issues with over four in ten (42%) concerned about the cost of the roll-out while three in ten (30%) say that helping older or vulnerable households to understand the new technology will be an issue. Other key concerns are: lack of information (27%), being tied to a supplier or not being allowed to switch after installing a smart meter (27%) and suppliers using the data to try to sell households products or services (27%).
Data protection issues also loom large - over four in ten people (42%) have misgivings about the amount of information smart meters will be able to glean about their energy usage. Almost a quarter (24%) are concerned about how suppliers will use this information or simply find smart meters too ‘Big Brother' for their liking. More worryingly, almost three quarters of consumers (72%) think that energy suppliers won't pass the operational cost savings they will make from smart meters on to customers.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Smart meters have the potential to transform the way people think about and manage their household energy bills. But without better communication and information we are in danger of seeing consumers switched off before the meters are even switched on. The success of this £11 billion scheme hinges on consumer engagement and yet they are being left to flounder in a sea of myths and misunderstandings.
"Smart meters will provide a golden opportunity for consumers to control and ultimately reduce their energy use. But they need to know about it. Consumer education opens up the possibilities and equips people to make even bigger and better decisions about their energy usage. With the roll-out due to kick-off in earnest in 2014, the priority now has to be to educate British householders. Delaying this will result in consumers seeing all cost and no gain and could reduce their co-operation when the time comes for the meters to be installed."