Plans to install smart meters throughout Britain could be thwarted unless government officials and regulator Ofgem are able to convince the public that the new smart meter system is capable of securely sharing information.Concerns have been voiced in the Netherlands that criminals could capture smart meter data or that police or insurance companies could use energy consumption information without permission from the consumer. These fears have effectively put the Dutch project on hold, according to a report from Datamonitor.
Privacy groups and consumer advocates in the Netherlands said that information gathering every 15 minutes paints an accurate picture of when a household is empty or when new gadgets have been plugged in.
Smart meters are equipped with technology that allows them to share information and receive instructions. All of the UK’s 26 million households are supposed to have a smart meter installed by 2020 as part of a scheme that carries a £8.1 billion price tag. Smart meters are intended to revolutionize how energy is consumed and generated but their deployment has been delayed because of a lack of standardization.
“The industry has been working flat out to develop the smart metering program since 2006 and continues to take on board lessons from other programs around the world,” said a spokesman for Energy UK, representative of Britain’s big six energy providers.
Datamonitor says the smart meter telecommunications deployment is comparable in size and scope to the Internet. The utility industry will go through major changes as it is implemented.
“The government and the regulator have to decide what they want the program to achieve and then they have to quickly establish a dialog with consumer groups and the general public,” said Alex Desbarres, a Datamonitor analyst and co-author of the report.
“The backlash against smart meters could be aggressive if the message that they will reduce energy consumption and help lower carbon emissions is not made clear,” Desbarres continued. “The government also has to address these privacy and security issues. Many people do not like the idea of utility companies having a permanent window on their private life.”
A new communications hub will be built that will receive and manage data sent out from the smart meters. The hub will make it easier for customers to switch power suppliers.
“What is the industry going to do with all this data?” Desbarres asked. “At the moment, they do not have the processes to manage3 it – and without significant new systems the data itself is worthless.”
Current UK smart meter pilot projects have raised issues that must be addressed such as access to private property when rewiring is necessary. Suppliers have also had problems receiving and deploying the proper equipment needed for the trial runs.
“Data protection and system security are crucial issues for the success of the rollout and operation of the smart metering and will be a vital part of the implementation work we will be doing,” said a spokesman for the Department of Energy and Climate Change (DECC(. “We will take a rigorous and systematic approach to assessing and managing these issues.”
“Ofgem’s main concern is that the interests of consumers are protected when smart meters are introduced,” said a spokesman for Ofgem. “Data protection and system security are crucial issues for consumers and we will take a rigorous and systematic approach to assessing and managing these issues. This will include stringent rules and safeguards.”
The EU mandated in 2006 that smart meters should be installed throughout the Member States. Voters in the Netherlands were very vocal in the opposition to a compulsory rollout of the devices and were able to convince politicians to quash the effort.
The DECC wants to install 47 million smart meters. Trial runs have shown that the devices help people save an average of £28 annually. Suppliers are responsible for the cost which works out to £340 per home.
Ofgem
9 Millbank,
London, SW1P 3GE
http://www.ofgem.gov.uk
Datamonitor
Charles House
108-110 Finchley Road
London NW3 5JJ
http://www.datamonitor.com
Smart meters are equipped with technology that allows them to share information and receive instructions. All of the UK’s 26 million households are supposed to have a smart meter installed by 2020 as part of a scheme that carries a £8.1 billion price tag. Smart meters are intended to revolutionize how energy is consumed and generated but their deployment has been delayed because of a lack of standardization.
“The industry has been working flat out to develop the smart metering program since 2006 and continues to take on board lessons from other programs around the world,” said a spokesman for Energy UK, representative of Britain’s big six energy providers.
Datamonitor says the smart meter telecommunications deployment is comparable in size and scope to the Internet. The utility industry will go through major changes as it is implemented.
“The government and the regulator have to decide what they want the program to achieve and then they have to quickly establish a dialog with consumer groups and the general public,” said Alex Desbarres, a Datamonitor analyst and co-author of the report.
“The backlash against smart meters could be aggressive if the message that they will reduce energy consumption and help lower carbon emissions is not made clear,” Desbarres continued. “The government also has to address these privacy and security issues. Many people do not like the idea of utility companies having a permanent window on their private life.”
A new communications hub will be built that will receive and manage data sent out from the smart meters. The hub will make it easier for customers to switch power suppliers.
“What is the industry going to do with all this data?” Desbarres asked. “At the moment, they do not have the processes to manage3 it – and without significant new systems the data itself is worthless.”
Current UK smart meter pilot projects have raised issues that must be addressed such as access to private property when rewiring is necessary. Suppliers have also had problems receiving and deploying the proper equipment needed for the trial runs.
“Data protection and system security are crucial issues for the success of the rollout and operation of the smart metering and will be a vital part of the implementation work we will be doing,” said a spokesman for the Department of Energy and Climate Change (DECC(. “We will take a rigorous and systematic approach to assessing and managing these issues.”
“Ofgem’s main concern is that the interests of consumers are protected when smart meters are introduced,” said a spokesman for Ofgem. “Data protection and system security are crucial issues for consumers and we will take a rigorous and systematic approach to assessing and managing these issues. This will include stringent rules and safeguards.”
The EU mandated in 2006 that smart meters should be installed throughout the Member States. Voters in the Netherlands were very vocal in the opposition to a compulsory rollout of the devices and were able to convince politicians to quash the effort.
The DECC wants to install 47 million smart meters. Trial runs have shown that the devices help people save an average of £28 annually. Suppliers are responsible for the cost which works out to £340 per home.
Ofgem
9 Millbank,
London, SW1P 3GE
http://www.ofgem.gov.uk
Datamonitor
Charles House
108-110 Finchley Road
London NW3 5JJ
http://www.datamonitor.com
