UK smart meters can cost less sooner

The government has estimated the cost of installing the devices — showing detailed gas and power usage to help reduce energy bills and waste — in 47 million homes by 2020 at around 8.6 billion pounds (US $14.01 billion).

But eMeter says revolutionizing the way British homes and businesses manage their energy use could cost 2 billion pounds less and be achieved four years earlier using other technology.

"The government estimates of 8 billion pounds are around a quarter too high," Chris King, eMeter chief strategy officer, told Reuters in an interview.

The government cost estimate includes around five pounds per meter per year in communication costs — transmitting data over mobile and fixed-line telephone networks.

But alternative systems using wireless radio devices, perhaps attached to electricity pylons and receiving data from hundreds of nearby homes rather than inserting mobile phone chips into each meter, could slash costs, eMeter says.

"This would be a much cheaper way to do things," King said.

Homeowners could also access their usage data via the internet, making the government's plan to install home display devices redundant and thus further cutting costs.

Under the government proposals released last December, Britain's utilities would be responsible for installing smart meters into homes. EMeter is in talks with the big six about using its products for their devices.

Smart meters would be connected to a central communications hub so information such as when high winds are producing an abundance of cheap electricity periods could be relayed to customers so they can make the most of it.

The company — which has been involved in smart meter roll outs in Canada, Finland, Sweden, and the United States — expects more detailed government plans in July, although the upcoming general election may affect the schedule.

The opposition Conservatives, who are widely expected to win the election, have said they intend to install smart meters nationwide by 2017, which eMeter believes is feasible.

"Enel in Italy installed around 30 million meters in five years," King said.

Last year, ElectraLink Ltd, the UK's central power data supplier, selected eMeter to develop its smart meter data service.