Green Barometer 4 - Smart meters: Clever Clocks

Our research reveals that eight out of 10 Brits don't know what they are paying for their gas and electricity

The figures also suggest 82 per cent of Brits don't know what energy rate they are on while energy bills are seen as the most difficult to understand of all household bills.

We commissioned the research to find out which respondents would be interested in having a smart meter and 96 per cent of those would then use the device to help cut their home energy use.

Smart meters - advanced electrical meters - would allow householders to monitor how much their energy use costs the environment and their pocket. They can also tell instantly which household appliances are costing the most money to run.

The devices have been trialled in countries ranging from Sweden to the US but are not widely available in the UK yet. These trials have shown that householders who use smart meters can reduce their energy bills by between five and 10 per cent.

Based on savings of five per cent we estimate that if everyone in the UK switched to smart meters British householders could save £1.2bn a year and the equivalent of 7.4 million tonnes of CO2 emissions.

The survey was commissioned as part of our Green Barometer IV report. In it, we set out the environmental case for smart meters.

Philip Sellwood, our chief executive, said "Our study finds that energy bills are the most difficult to understand of any household bill: twice as hard as phone bills and four times as difficult as bank statements or credit card bills.

"The lack of transparency surrounding energy usage is one of the biggest problems holding back the UK's fight against climate change. And without the uptake of smart metering, this situation in not going to change anytime soon.

"The current situation is hard to believe, especially with the recent rise in household fuel bills. Most people would never sign a mobile phone contract if they didn't know how much it would cost of calls. Similarly, you wouldn't shop every week and then get the bill three months later and just hope you could pay for it".

He added "Smart meters help householders work out how much energy they are using, how much they are paying for it as well as showing in real time which appliances are producing the most CO2 ".

Conducted by Drummond Madell - the survey saw more than 1200 people across the UK contacted by telephone in January 2008.

Read our Green Barometer report here

Smart meters would cost between £100 and £200 if mass-produced. Smart meter benefits include:

• Frequent data on energy consumption (both gas and electric).
• Time of use data; historical use data.
• Differential tariffs based on time of use.
• Greater control over peak demand.
• Ability for the energy suppliers to send energy saving tips to consumers based on their usage.
• They monitor the energy renewable sources installed in the home, such as solar panels and wind turbines, are using and producing.
• The ability to switch between credit and pre-payment functions.

Smart meters could only be fitted by energy suppliers. The take-up of smart meters requires Government backing and a commitment by energy suppliers.