Smart meters promise another reason to resentenergy firms
智能電表成為人們抱怨能源公司的又一理由
The midnight oil
午夜石油樂隊
GOOD neighbours avoid doing laundry in the small hours. Yet householders in the north eastof England are growing keener on late-night loads. Watched by academics at DurhamUniversity, volunteers are testing a tariff that makes power more expensive when demand ishigh. Some use washing machines that run only when energy is cheap.
Britons are used to paying variable prices for hotel rooms, train tickets and telephone calls.Now some hope that smart electricity meters, which the government wants installed in everyhome by 2020, will help energy suppliers charge in a similar way. Boosters say dynamic pricingcan hold down bills and help save the planet. It is also likely to make power firms even lesspopular than they already are.
Flexible pricing is supposed to discourage power use at peak times, thereby bringing downthe overall cost of generation by cutting the need for power stations that run only a few hourseach day. Controlling energy use would also help network operators handle fluctuations inrenewable power, which rises and falls depending on how windy or sunny it is. These problemswill get more serious as Britain decarbonises: using more green electricity to power things suchas cars and heating will make demand spikes bigger—and thus more costly—just as growth inrenewables makes supply less dependable.
Some Britons have been using cheaper off-peak power since the late 1970s, when “Economy 7”tariffs were created to encourage overnight demand for juice from nuclear power stations.Smart meters, which will add about £12 billion ($20 billion) to energy bills as they are rolled outover the next five years, are meant to save suppliers money by wirelessly transmitting meterreadings, and to provide households with information that can help them to use less power.What excites energy experts is that, by recording full details of energy consumption, theycould also make it easier for suppliers to create several peak and off-peak periods during eachday, or even let prices float freely depending on the weather. Last month Ofgem, the energyregulator, said it was mulling reforms that could enable rates to change every half-hour.
The problem is that a proliferation of complex tariffs risks making it more difficult for bill-payersto identify the cheapest ones, even as regulators battle to simplify the market. Critics also saythat punitive charges at peak times could affect the poorest families disproportionately,because they already use power only when it is essential. And some fear that, without strongercompetition, energy firms would use dynamic tariffs to raise prices, not just to even outdemand.
The biggest worry is that people will not be persuaded to change their routines. Many alreadypay too much for their energy because they have never bothered to switch supplier. A studyin 2012 by Consumer Focus—now part of the Citizens Advice Bureau—found that 38% ofhouseholds with Economy 7 or similar tariffs did not use enough off-peak power to make itcheaper than a standard rate. Trials of more dynamic tariffs report mixed success—and almostall of those have involved green-minded volunteers, not busy families.
Enthusiasts say variable pricing will work best when people can set gear such as freezers,boilers and air-conditioners to respond automatically to pricing signals broadcast to theirsmart meter, in exchange for a discount from their supplier. Fridges need not runconstantly to keep their contents fresh, for example; clever ones might perhaps turnthemselves off during peak demand periods.
Yet bill-payers will probably find it creepy to hand outsiders control of their appliances. Ahousehold full of smart devices would delight hackers. And it will bring chewy legal problems,such as working out who to blame should faulty appliances churn through premium-pricedpower. As Britain’s smart grid expands, rumbling washing machines may not be the only thingkeeping people awake.