The Electricity Commission last month stated the need to watch overseas developments before regulating smart meter installation in New Zealand, but this week's announcement that all UK households will have smart meters by 2020 was not welcomed by all industry players.

The UK’s Department for Energy and Climate Change’s £8 billion ($NZ18.3million) scheme is designed to see 47 million meters installed in 26 million properties by 2020.

The roll out is part of a wider push to encourage consumers to cut their energy use and carbon emissions.

But the mandate has attracted criticism for the cost of installing the meters, likely to be passed on by energy companies to consumers.

Intelligent software company Onzo, which works with utility companies in the UK, said it was disappointed with the government’s decision to provide customers with a standalone energy monitor.

In an emailed statement to NBR, chief executive Joel Hagen said the government should have mandated the information utilities should provide and leave it to energy suppliers to compete in relation to the delivery of that information.

“Everything now rests on the effectiveness of those displays. At £15 ($NZ34.45) per display, it is doubtful whether the reductions in usage that the government anticipates will be realised.”

The plans raised more questions than answers about what the display should do, preventing the industry form innovating and progressing development in time, he said.

New Zealand’s Electricity Commission is due to report back to Energy and Resources Minister Gerry Brownlee this month about technical standards.

In a report on smart meters release this year, Parliamentary Commissioner for the Environment Jan Wright called for ‘smarter’ smart meters and said the government needed to take a more hands on approach.

Energy companies around the country have been rolling out their own smart meters and nearly 1.3 million households are expected to have them by 2012.

The meters have not been at a cost to consumers in New Zealand, but they have attracted criticism as generators decide on functionality and different kinds of meters – preventing consumers easily being able to switch suppliers.

Dr Wright recommended one key function, home area network (HAN) capability, which should be mandatory, along with a flat (average) rate for those who do not switch off in peak time.