Energy consumers in the dark about smart metering
The roll-out of smart meters into British homes could be derailed unless more effort is made to talk to consumers about the implications. This is the stark warning from uSwitch.com, the independent price comparison and switching service, after new research showing that just four in ten consumers (40%) know what a smart meter is.
The big six energy suppliers are already piloting smart meters in British households with the mandated nationwide roll-out set to begin in 2012. Despite this, many consumers are in the dark - 35% have heard of smart meters but don't actually know what they do, while 25% don't even know what a smart meter is.
As well as a lack of understanding, Britons also have data protection concerns. Four in ten (40%) have some misgivings about the amount of information suppliers will be able to gather about their household through a smart meter. Almost a fifth (18%) think smart meters could potentially provide too much information about individual households, but expect this aspect to be monitored and regulated very carefully, while 16% are concerned about how the information will be used. For 6% though, smart meters are simply too ‘Big Brother'.
DECC has highlighted a net saving of £14 a year by 2020 for those who use their smart meter to reduce energy usage. Consumers seem fairly underwhelmed by this saving, with just over four in ten (42%) saying that it is lower than expected, while 38% think the saving is too small to be of interest. Despite this, almost three quarters (74%) would use the information provided by a smart meter to cut down their energy usage and be more energy efficient while 20% would use the information to better manage their energy account and to stay out of debt with their supplier. Importantly, almost half of consumers (46%) would feel reassured that their energy bills are accurate.
The successful roll out of smart meters and the realisation of their benefits will only be possible if consumers are on board with the scheme. But at the moment just 15% are completely positive about the move. Almost half (46%) are fairly happy about it as long as they are not going to be expected to foot the bill, while a quarter (24%) are still undecided - they want to know more about what information will be gathered and how it will be used. Consumer education will be key to winning people over and to ensuring that households realise the full potential of smart meters and the benefits they will bring.
Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Smart meters have the potential to revolutionise the way households view their energy usage and how they interact with their supplier. But without the right education and information we are in danger of seeing consumers switched off before smart meters are even switched on.
"We have a golden opportunity to put consumers in control of their energy usage and to allow them to understand the positive impact energy efficiency could have on their bills. But it is in danger of slipping through our fingers if the industry doesn't start to talk to consumers about the benefits of smart metering now.
"As well as allowing households to become more energy efficient, smart meters will pave the way for suppliers to bring out more innovative tariffs built around consumption patterns - these could also help consumers to reduce their bills. DECC has said that households could enjoy a net saving of at least £14 a year by 2020 if they use the meter to make energy efficiency savings. But with innovative tariffs and greater uptake of energy efficiency measures there's no reason why consumers can't save more.
"However, we will only see these benefits if consumers are on board - the industry needs to start talking to customers now explaining simply and clearly what smart meters are, the benefits and the savings they could see by using a smart meter. By starting this conversation now the industry can also knock on the head any fears, such as data protection concerns, as and when they arise. This will be vital in securing consumer co-operation when the time comes for the meters to actually be installed."