Memorandum submitted by the British Electrotechnical
and Allied Manufacturers Association (CIT 45)
1. The British Electrotechnical and Allied
Manufacturers Association (BEAMA) welcomes the opportunity to
submit evidence to this Environment Food and Rural Affairs Select
Committee inquiry into climate change: the "citizen's agenda".
BEAMA members are world leaders in the design and manufacture
of smart meters and associated systems for the electricity, gas,
water and heat markets and are based all over the UK. The Association
is therefore particularly interested in the smart metering reference
of the Committee's work and our submission aims to highlight the
contribution that smart meters can make to tackling climate change,
increasing energy efficiency and benefiting a long term low carbon
economy.
2. The use of smart meters providing innovative
displays in homes, on computers or TVs, combined with better,
more informative bills can begin to engage the homeowner with
their potential to reduce their energy bills, whilst helping the
environment and security of supply of energy for the country.
Smart metering systems have been shown to provide significant
energy and carbon savings, and provide a tool for consumers to
better manage their energy, and water usage. It is well understood
that pre-payment metering engages the customer much more than
standard meters, and as a result these customers can improve their
management of energy usage. Smarter versions of all metering systems
will extend this engagement between the customer and their energy
use further.
3. There is no single definition of smart
metering, however all smart-meter systems comprise an electronic
box and a communications link. At its most basic, a smart meter
measures electronically how much energy is used, and can communicate
this information to another device. This type of system can be
added to provide a wider range of customer benefits in ways:
— AMR—One way Communication from
the Meter to the Data Collector- as a minimum Automated Meter
Reading.
— AMM—Two Way Communication between
the Meter and the Supplier—enabling a wider range of functions
known as Automated Meter Management.
4. The key distinction between smart-meter
types is therefore determined by their communication i.e. whether
there is any with the energy supplier, whether this is one-way
or two-way and the data-storage capability of the meter. The combination
of these features determines the extent to which the metering
system can help customers reduce their energy usage and minimise
carbon emissions. These smart functionality options are likely
to be in 3 broad bands: the display of utility data for consumers;
the provision of better, more accurate billing data, and the use
of innovative tariffs for load control. All these functions are
recognised as having the potential to lead to energy use reductions.
5. To allow the introduction of any type
of smart metering however, the basic measurement and storage of
metering data needs to improve considerably. The most cost effective
way to deliver this is for all new meters to contain a minimum
level of data and for this data to be stored and accessed using
industry agreed protocols to allow easy communication with the
meter. This would allow the present market structure in the metering
industry to continue, and facilitate the market to deliver the
optimum smart functions.
6. The UK Government is shortly to consult
on the Energy End Use and ESCO Directive which needs to be implemented
by May 2008. Article 13 of the directive covers utility metering:
"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 use".
7. Implementation of the Directive could
provide the baseline for smarter metering possibly mandating a
the minimum level of functionality, with the wider Directive requirements
of the time of use meter data and increased accuracy of billing
provided by the increased smart functions, likely to be specified
by the market. In addition these extra levels of functionality
could be included under future Energy Efficiency Commitment schemes,
if the energy savings can be measured and agreed.
8. The Directive will provide energy usage
data for customers which, evidence suggests, will result in significant
energy savings. The recent Sarah Darby (ECI) report for Defra
indicates direct feedback, via well positioned customer interface,
can deliver savings of between 1-26%. Further evidence from a
range of sources, including the Energy Saving Trust, indicates
typical energy savings of between 5-10% once smart meters have
been introduced. Implementation of the Directive will also provide
customers with much better and more accurate bills and a basis
for metering micro renewables. It is worth noting that research
by Sustainability First has demonstrated that just a 1% saving
represents 8.6% of the Government's domestic CO2 reduction target.
9. Smart metering has been rolled out with
considerable success in a number of world wide markets including
the United States, Italy, Sweden and Australia. Indeed for some
years BEAMA members have produced meters and controls enabling
suppliers and consumers to establish an accurate, up-to-the-minute
record. This ensures an accurate statement can be calculated and
billed, avoiding the problem of increasing high bills for customers.
There is worldwide evidence that giving consumers appropriate,
relevant information on their energy use usually leading to a
reduction in their use of energy.
10. International experience however suggests
that although the overall benefits to society exceed the costs,
government or regulatory intervention has been required to facilitate
smart metering because suppliers/distributors cannot capture all
these benefits. The Government presently has an opportunity with
the Energy End Use and ESCO Directive to create an environment
where metering can make a real difference in both environmental
and energy terms. The forthcoming Energy White Paper, due in Spring
2007, provides a chance for the Government to require the introduction
of smarter metering, with a minimum level of functionality, to
deliver customer displays, better billing and increased energy
efficiency.
The British Electrotechnical and Allied Manufacturers
Association (BEAMA)
November 2006
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