Alarm raised on U.K. smart meters

LONDON — The U.K.’S $17.9-billion plan to install smart meters to measure gas and electricity use in every home may disadvantage poor and elderly people, a panel of lawmakers said.

The meters, designed to show consumers how much energy they’re using and at what rate, will make it easier for utilities to cut off a home’s gas and power supplies, the Public Accounts Committee said Monday in an emailed report. It urged the government to set clear rules for an industry that’s dominated by six companies.

“Smart meters will allow energy companies to disconnect customers without entering the property,” Margaret Hodge, chairwoman of the multiparty panel, said in a statement. Officials must “ensure that there are proper safeguards to protect the vulnerable, elderly and those on low incomes to ensure they benefit from the program.”

Britain plans to install 53 million smart meters in homes and businesses by 2020 to cut electricity use and lower carbon emissions.

A mass rollout of meters is due to start in 2014, with the installation and running costs paid for by consumers through their utility bills

The six utilities are likely to benefit from reduced costs as a result of the meters because fewer staff will be needed to take manual readings, according to the panel.

“No transparent mechanism presently exists for ensuring savings to the supplier are passed on,” Hodge said. “The track record of energy companies to date does not inspire confidence that this will happen.”

The lawmakers also said the government must conduct proper trials of a planned $4.6-billion computing system designed to transmit and process data from the meters, and clarify suppliers’ responsibility.