Reino Unido : August 14, 2009

In order for us to effectively monitor, manage and reduce our energy usage (and our carbon footprint as well), we must first understand how and when we are consuming our electricity and gas.  Automated Meter Reading (AMR) or Smart Metering capabilities have been around for some years but recently, with more cost effective technology and the introduction of the Carbon Reduction Commitment (CRC) in the UK, the subject has become a high priority on the Government’s agenda.  As part of the Government’s programme to encourage energy savings, plans are in place to deliver smart metering technology to every UK household by 2020.  Timescales for installing this type of metering equipment to all commercial premises are shorter in duration with monthly sub 100 kW demand meters to be converted by April 2014.

This smart metering technology has two major benefits for the consumer.  First, it provides for timely and accurate billing with invoices based on actual energy used during any given time period.  Currently, many companies are receiving invoices based on estimated data with legislation only requiring an actual reading to be taken every two years.  The lack of accurate data leads to under/over billings and can heavily distort usage patterns or trends.  Secondly, with the visibility of interval data that provides energy usage of 30 minutes, consumers with non-half hourly metered supplies can now analyse where and when energy is being used and identify where savings can be achieved.  This raw data can be incorporated into spreadsheets/databases to provide useful management information.  Certainly, for the business community that are subject to the CRC scheme, the ability to view actual data creates opportunities for monitoring accurate usage against government set benchmarked targets and for understanding where saving can be made.

Currently, suppliers base offerings for sub 100 kW meters on a matrix basis.  If suppliers can accurately forecast energy requirements of an end-user over a period of time, a more accurate offering (with reduced risk premium) should be available.  As a result of the smart metering rollout it is widely expected that suppliers will be in a position to provide bespoke tariffs/rate structures on the basis of being able to view a user’s load profile and shape.

In addition to reducing energy usages (and thus resulting in monetary savings) under the Government’s Enhanced Capital Allowances Scheme, tax breaks are available to offset part of the installation costs and this can be up to one-third of the total cost of installation.  For companies participating in the CRC, the installation of smart metering prior to 2011 will boost their standings in the performance tables.