UK smart meter rollout set to be most expensive in world energy ...
Smart meter deployment in the UK is set to be the most expensive in the world, according to new research.Business information service Datamonitor released a report today that said the global smart metering market for residential customers is set to reach £3.6 billion by 2015 – a 350% increase from 2009. But it said the roll-out of smart metering in the UK would in some cases cost double what it would in other territories.
"The UK solution looks very expensive compared to, say, France where ERDF expects to drive down the cost of its meters to £28-£30. The equivalent figure for the UK’s meters is around £57," said Jon Lane, energy director at Datamonitor.The higher costs are down to the sophisticated nature of the UK smart meter system, according to Datamonitor. It said the roll-out would involve multi-utilities with a central communications provider to collect and provide metering data to market participants and a centralised procurement programme to deliver economies of scale.
"All of this makes the UK’s smart metering programme expensive. All-in costs including gas meters were originally estimated at £136 per household but the more recent decision to fit modular meters may push up the cost further," said Lane.
White elephant
Smart meter deployment in the UK is set to be the most expensive in the world, according to new research.Business information service Datamonitor released a report today that said the global smart metering market for residential customers is set to reach £3.6 billion by 2015 – a 350% increase from 2009. But it said the roll-out of smart metering in the UK would in some cases cost double what it would in other territories.
"The UK solution looks very expensive compared to, say, France where ERDF expects to drive down the cost of its meters to £28-£30. The equivalent figure for the UK’s meters is around £57," said Jon Lane, energy director at Datamonitor.The higher costs are down to the sophisticated nature of the UK smart meter system, according to Datamonitor. It said the roll-out would involve multi-utilities with a central communications provider to collect and provide metering data to market participants and a centralised procurement programme to deliver economies of scale.
"All of this makes the UK’s smart metering programme expensive. All-in costs including gas meters were originally estimated at £136 per household but the more recent decision to fit modular meters may push up the cost further," said Lane.
White elephant
Lane warned that these higher costs would only be acceptable if Government managed to drive down energy usage. "If consumers don’t reduce usage then the UK system becomes an expensive white elephant," he said. Lane said that globally smart metering has gained "an unstoppable momentum" with 60 million residential smart meter units set to be shipped in 2015 – a four-fold increase on 2009.
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