New smart meters on way for millions

It is hoped smart meters will encourage people to cut their power use and fuel bills by showing householders how much energy they are using in real time as well as giving details of their carbon emissions and how much it is costing them.

The smart meters, which also enable power companies to take readings remotely, will spell the end of estimated billing.

British Gas said it was hoping to take the lead in the roll-out, which was announced by the Government late last year.

Under Department of Energy and Climate Change (DECC) plans, energy suppliers will be required to install smart meters for gas and electricity in all homes by 2020.

Installing 47 million of the meters in 26 million homes by 2020 will cost between 7bn and 9bn, or around 340 per household.

DECC estimates people could save around 28 a year by 2020 on domestic bills – although householders who use the standalone display units to help them use energy more efficiently could save more, for example by putting on appliances such as washing machines at night when electricity is cheaper.

British Gas said it planned to beat the Government's timetable for the roll-out.

Managing director Phil Bentley said: "At British Gas, we already have the largest smart meter trial in the country. We want all our customers to have smart meters as soon as possible, so they can take advantage of this technology and use it to help them cut their energy use, carbon emissions and fuel bills."

The firm estimates the roll-out of smart meters will create 2,600 jobs in the company by 2012, including 2,100 experts in the field, 400 support staff and 100 managerial jobs.