Government gives go-ahead to smart meters

The government has unveiled its vision of hi-tech homes with ‘smart’ meters acting as a cornerstone of a more efficient, greener electricity grid system.

British Gas and other power suppliers have been given responsibility for installing meters in each of Britain’s 26m homes by 2020, enabling them to read consumption levels remotely and end the use of estimated bills.

The gadgets would also allow homeowners to monitor their own gas and electricity usage – and production if they have solar panels or wind turbines.

However, a row over the £8.5bn outlay for smart meters threatened to overshadow the announcement with critics warning that the energy companies might pocket the benefits.

The Department of Energy and Climate Change (DECC) said the cost of the scheme would be dwarfed by the £14.5bn of expected savings as power companies reduce administrative costs and consumers benefit from lower bills.