Smart meters are the next generation of electricity and gas meters. They promise an end to estimated bills and meter readings and should give both customers and energy suppliers accurate information as to how much electricity or gas is being consumed. Future advanced versions could see consumers displaying and analysing their energy use on their mobiles, TVs or computers. Given the potential to raise consumer awareness of energy use, positively influencing consumption patterns, MEPs were then keen to have a clear commitment in the liberalisation package to rolling-out the new technology.

Despite the promised benefits of smart meters, the gas and electricity directives take a more cautious position on smart meters. Member states must only ensure implementation of ‘intelligent’ and ‘interoperable’ metering systems following a positive economic assessment of all the long-term costs and benefits to the market and individual consumers. The assessment may also examine which form of intelligent metering is cost-effective and what roll-out timeframe is feasible. Only where smart meters are assessed positively is there a requirement that at least 80% of consumers are to be equipped by 2020.

It remains to be seen how many member states will give a positive assessment of smart meters, within the required three years of the directive entering into force. Consumer organisations, for one, are not in favour of mandatory roll-out (see interview with BEUC). The fear is that smart meters are currently more beneficial for network owners, saving on personnel costs by not having to physically read meters, than for consumers. Much depends on metering software and the extent to which meters inform consumers as to reducing or optimising consumption.