SOUTH EAST MEP PAVES WAY FOR 'SMART METERS'

12.32.58pm UTC (GMT +0000) Thu 15th Dec 2005

A plan to introduce 'smart meters' to check on gas and electricity use in every home has received the backing of MEPs at a crucial vote in the European Parliament in Strasbourg yesterday.

Sharon Bowles Liberal Democrat MEP for South East said:

"These new metering and billing measures are essential because they establish the fundamental principle that consumers have a right to information about how much energy they are using."

"It is only when people have such knowledge that they can start to adapt their behaviour and choose energy-saving options."

The new EU law, aimed at increasing energy efficiency and curbing climate change, should now also play a role in helping tackle consumer debt.

Smart metering services, which will be introduced to all new connections and as existing meters need replacing, will allow consumers to check at a glance how much energy they are using and how much it will cost. The new meters are part of a package of measures that will also force energy companies, for the first time, to give individual consumers accurate and detailed bills along with information about the environmental impact of their energy use.

Sharon Bowles, said:

"A major cause of personal debt in this country is having a huge gas or electricity bill land on your door mat after months or even years of estimated bills, or no bills at all."

"It will require gas and electricity companies to send accurate, regular bills based on actual consumption. This will allow customers to keep track of what they are actually using and will make a real difference to consumers helping them to save money by cutting their energy use and stopping the widespread problem of serious debt because of unexpectedly large fuel bills. "

The billing amendment will mean that consumers pay for their actual consumption and not estimated costs, and they will also receive bills more frequently so they can better manage the amount they use and the amount they pay.

Ends.

NOTE:

Metering amendment

1. Member States shall ensure that, in so far as it is technically possible, financially reasonable and proportionate in relation to the potential energy savings, final customers for electricity, natural gas, district heating and/or cooling and domestic hot water are provided with competitively priced individual meters that accurately reflect the final customer's actual energy consumption and that provide information on actual time of use. When an existing meter is replaced, such competitively priced individual meters shall always be provided, unless this is technically impossible or not cost-effective in relation to the estimated potential savings in the long term. When a new connection is made in a new building or any major renovations as set out in the directive 2002/91/EC such competitively priced individual meters shall always be provided.

Billing amendment

2. Member States shall ensure that, where appropriate, billing performed by energy distributors, distribution system operators and retail energy sales companies is based on actual energy consumption, and is presented in clear and understandable terms. Appropriate information shall be made available with the bill to provide final customers with a comprehensive account of current energy costs. Billing on the basis of actual consumption shall be performed frequently enough to enable customers to regulate their own energy consumption