Effect of smart metering on electricity prices

Large-scale smart meter rollout is expected to take place in most of Europe by the year 2020. Thanks to bi-directional communication between consumer and producer, this technology allows a better monitoring of energy consumption and the introduction of flexible energy tariffs, which are better suited to fluctuating renewable energy production. However, a number of issues have also been raised in relation to smart meters; particularly in relation to data privacy and the risk of an increase in electricity prices due to high investment costs passed on to the consumer. It will be fundamental for policy makers to ensure that costs and benefits related to the rollout will accrue fairly to each stakeholder, while ensuring protection of the weaker members of society.

• Primary Source

EurActiv, 24.8.12: Consumers unaware of smart meters ahead of EU-wide roll-out http://www.euractiv.com/consumers-unaware-smart-meters-a-news-514432

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