The Government wants to have 47 million of the meters, which should help people cut their energy usage, fitted in 26 million homes by 2020 at a cost of between £7 billion and £9 billion, or around £340 per household.
But the devices will save the average household just £28 a year off a typical annual duel fuel bill by 2020, meaning it will take around 12 years just to recoup the initial installation costs.
The savings is also only a fraction of the current average annual gas bill of more than £800 a year and electricity ones of around £445.
The meters aim to help people cut their
utility bills by enabling them to monitor exactly how much energy they are using at different times.
They will also end the need for bill estimates and meter readings, with people instead charged according to exactly how much energy they have used.
“Customers will only save money if they reduce their energy consumption or opt for a
cheaper energy tariff,” says Gareth Kloet, Head of Utilities at Confused.com.
“The Government’s plans to install smart meters in all homes is a great idea but people can take a number of practical steps right now to help cut household energy bills by monitoring and reducing usage and simply changing to a cheaper tariff or provider.
“Whilst a smart meter will perform the same basic task as your normal energy meters; to accurately record the amount of energy you use, critically they will allow the energy providers to read the meter remotely and therefore send regular and most importantly accurate bills.
“And the benefits don’t stop there. Once consumers know how much gas and electricity they use, they can be more confident and efficient about searching for a better tariff.”
Changing your energy provider is a lot easier than you may think and could cut your annual bill. View our
utility comparison tables to see if you are getting the best deal.
