A missed opportunity to involve SMEs in cutting emissions
May 19th 2008

The Energy Services and Technology Association (ESTA) believes that the Government’s response to the Energy Billing and Metering Consultation – published on 29 April – represents a missed opportunity to make real inroads into carbon emissions from the Industrial and Commercial (I&C) sector – especially smaller businesses.

A key element in its strategy to move the country’s energy supplies to a more sustainable basis was the provision of ‘smart metering’ to all but the smallest businesses. However, the Government announced after the consultation on smart metering had ended that it had changed the threshold so that only a small fraction of those businesses originally covered would now benefit from smart metering technology.

ESTA believes this is short-sighted and timid. Professor Martin Fry, the Association’s chairman commented: “What is the point of publishing a White Paper setting out how the UK will meet its climate change and energy security goals if the Government then revises its own targets downwards without any discussion with either industry or consumers? We need strong leadership and challenging targets if we are to make real progress. This Government response fails to provide either.”

The Government amendment of the threshold means that instead of gas consumers who used more than 73,200kWh being included, now only those with more than 732,000kWh are involved. This is a significant change and reduces the target from 400,000 metered points to around 40,000. The Government argues that this is the real ‘cost-effective level’ but ESTA’s research suggests that, because of recent advances in technology, businesses with much smaller energy demand could benefit from smart metering.

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