Blog Post

New data shows that Smart Meters saved customers money on their energy bills during Covid-19 lockdown

Richard Simmonds • Jul 22, 2020

With many energy suppliers still struggling to sell the benefits of smart meters to customers, there is one angle you should take to encourage adoption, and that’s they can save them money.

Money saved over lockdown?

According to a recent report released by Utilita, smart meter owners were shown to have saved £39.50 on their monthly energy bills even as domestic energy usage increased as a consequence of the lockdown.


Across the UK savings were equal to £270 million during the same period and adds to the positive news in June that smart meters can help consumers save up to £250 per year on their energy bills.   


Selling the benefits

Promoting the benefits of smart meters is often cited as one of the biggest challenges an energy supply business faces when trying to hit its installation target.


Using statistics and studies that prove the benefits can be a good way of convincing a customer to have one. Highlight the benefits such as how they can be used as an educational tool for children (and adults) on energy usage and how they can help a family know exactly what their money is being spent on.

Ofgem gives Scottish Power Energy Networks permission to access smart meter data

In other Smart Meter news, the energy regulator Ofgem has permitted Scottish Power Energy Networks (SPEN) to gain access to household smart meter data so that it can improve its services to consumers.

Data protection

After approving SPEN’s data privacy plan which allows the company to collect and process household smart meter data, Ofgem made it clear that it would have to strictly adhere to what was agreed and that if any changes to the plan are made they must be notified immediately.



“The Authority approves Scottish Power Energy Networks (SPEN’s) data privacy plan for accessing household electricity smart metering data. The plan is approved based on our assessment that SPEN’s data privacy plan meets the requirements of Licence Condition 10.A.4.


The plan approval will allow SPEN to collect and process domestic smart meter consumption data which relates to a period of less than one month in the format and under the conditions set out in the data privacy plan,” said Ofgem in its approval letter.



What will the data be used for?

According to SPEN’s plans, the data will be used to understand at a more refined detailed the demand of its network to allow it to manage it more efficiently. It hopes to achieve:



  • Improvements to its low carbon energy infrastructure
  • Customer service improvements
  • Technical and non-technical losses reductions
  • Reduced power outage disruption
  • Network cost reduction



Other energy companies could follow SPEN’s lead and apply for similar permissions, however, Ofgem has clearly stated that SPEN’s approved plan is specific to it and any other companies would have to file their own plans.



One of the biggest concerns and hurdles for energy suppliers when it comes to convincing consumers to adopt smart meters is data protection. This move is unlikely to change those people’s minds.


With the government hoping to get a smart meter into as many domestic and commercial properties as it can to hit its targets, energy suppliers are under increasing pressure to increase the number they install.



In June, new plans were unveiled that will entail the introduction of a four-year policy framework with annual milestones that must be hit. If energy suppliers fail to hit the targets, then they could face punitive measures.

Further Reading

How should an energy supplier handle energy billing complaints?


Energy Billing: The Differences between Domestic and Business energy bills


Half of Energy Suppliers have failed to hit Smart Meter Installation Targets


Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

 

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

 

Follow us on Twitter and LinkedIn to keep up to date with the latest news and updates in the energy industry.


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