Energy End-Use Directive: Good News for Smart Metering

by Howard Porter, BEAMAEnergy - 3rd Feb 2006

By Dr Howard Porter, Director of BEAMAEnergy - the UK trade association group for the controls, metering, energy related communications, and electric heating and ventilation industries.

The European Parliament's passing of the Energy End-Use Efficiency and Energy Services Directive is good news for 'smart' metering - for business and consumers, and is the new energy efficiency measure.

The announcement on the Directive has been followed by a major consultation exercise on smart metering, launched by Ofgem on February 1st. Taken together they represent the biggest opportunity for the adoption of better metering throughout the UK. In addition the estimated bill may become a thing of the past, replaced by accurate monthly or quarterly bills.

With EU Member States looking for energy saving initiatives to meet targets using national Energy Efficiency Plans, smart metering solutions are ideal for the UK in ensuring the designated Directive requirement that meters and systems measure accurately (and frequently) customers? actual energy consumption, with informative billing is met.

The Directive imposes a general energy end-use savings target of 1% per year for nine years (2008-2017) with an overall target of 9%. These savings can be realised from industry and households encompassing all types of energy.

Energy distributors and retail energy sales companies now have a massive opportunity to offer their customers metering and billing systems to help them better manage their energy usage. There is evidence from around the world that giving consumers appropriate and relevant information on their energy use can in most cases lead to a reduction in their consumption of energy - this is particularly relevant in the future with potentially much higher gas and electricity prices.

Cost-efficient, domestic smart metering and control systems are the next energy conservation measure. The Directive's effective UK implementation provides the impetus for industry investments.

The Ofgem consultation covers all the benefits of better metering, including meter reading costs, costs of disputes and better customer transfers.

Investment in modern metering has been minimal. Yet, today's smart metering systems would eliminate estimated gas and electricity bills. Investment would avoid consumers being disconnected for debt non-payment, plus waiting ages for energy supplier refunds. In Italy and Sweden, investment in better metering is giving consumers more efficient billing and more opportunities to manage their energy use. Why not here?

There is a need now for coordinated action and planning by all companies and agencies in the metering and energy efficiency industries - the large potential benefits of smart metering could be lost if the opportunities brought by the Directive and the Ofgem consultation are not taken up.

Want to know more about Smart Metering? Click here to view the Lead Article.

----------------------------------------------------------------------------------------------

If you would like to submit a response to this article please contact the Partnership Secretariat.