5. ELECTRICITY AND RENEWABLES

Smart metering

The ESBN plans to roll out 2.25 million smart meters by 2025, in three phases as part of the National Smart Metering Programme (NSMP). This is a multi-year investment project including the roll-out of new digital electricity (and gas) meters, a communications network to support them and investment in new information technology systems. The CRU is responsible for the overall co-ordination of the NSMP in the electricity (and gas) sectors. The ESBN is responsible for the day-to-day implementation of the NSMP roll-out in the electricity sector (CRU, 2017c). The total project cost is estimated at EUR 1.2 billion. Customers will not pay upfront charges for installation of smart meters, but costs will be recovered through regulated infrastructure charges on electricity bills.

The ESBN will install 250 000 smart meters in the first phase (2019-20). Priority is to be given to those consumers who explicitly request smart meter installation and to the replacement of old meters that are approaching the end of their technical life. Smart services such as time-of-use tariffs and smart bills will become available at the end of 2020, so that consumers can benefit from the additional services provided before the entire NSMP has been delivered.

The ESBN will then install approximately 500 000 meters in each of the four subsequent years. In the second phase (2021-22) additional functionalities of the smart meters will include a new form of smart prepayment. Consumers will be able to pay for their energy up front without the need for an additional meter in their homes, as the meter can be controlled remotely. In the third phase (2023-24), the ESBN will make a home area network available to allow consumers to access real-time data on their household’s energy usage via a device in their home (CER, 2017c). The rationale for the phased implementation is to reduce the technical complexities, to undertake regular reviews of the progress made and to take any remedial action necessary. Once fully implemented, the NSMP will transform the way the electricity market operates (CRU, 2017d).

Smart meters will facilitate introduction of innovative products and services, providing more choice to consumers in terms of usage and tariffs, eliminating the need to use estimated meter readings and facilitating the switching process. The smart functionality does not occur at the meter itself, rather at the central level, thus enabling, for example, seamless switching among suppliers by customers. The smart meters will allow for a read-out every 30 minutes and can thereby facilitate time-of-use pricing. Dynamic time- in-use tariffs for customers are the cornerstone of the Smart Metering Programme design. The CRU has announced the introduction of a standard smart tariff by requiring suppliers to offer customers three different time-of-use rates: a peak rate, a day rate and a night rate (CRU, 2017b). Many households should be able to save 2.5-3% on their electricity bills by using a smart meter.

Smart meters will also facilitate better network planning. This is of increasing importance for EirGrid in light of the move towards decentralised and intermittent electricity generation. The roll-out of smart meters at the distribution level is mirrored by the introduction of a smart grid at the transmission level (see the section on “Networks” below). Smart meters and smart grids are critical to support the policy targets set in the 2015 White Paper for a transition to a low-carbon energy sector with more competition, energy efficiency and renewable generation.

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