British Gas and Landis+Gyr announce GBP 600 million smart meters deal

LONDON, Sept. 16, 2013 /PRNewswire/ -- British Gas customers are set to benefit from a £600m deal between British Gas and Landis+Gyr. The landmark deal, announced today, means Landis+Gyr will supply the majority of the 16 million smart meters British Gas will install in its customers' homes.

By 2020 smart meters will be rolled out as standard to homes and businesses across the country as part of a Government initiative. They will replace current gas and electricity meters and offer the benefits of:

• An in-home display showing how much gas and electricity is being used as customers are using it – and the cost in pounds and pence
• Estimated savings of around 5% (£65) per year
• Meter readings sent directly to energy suppliers, putting an end to estimated bills

British Gas adopted a strategy to introduce smart meters into homes and businesses early in order to bring these benefits to customers as soon as possible, and currently leads the industry with more than a million meters already installed in customers' homes and businesses.

Today's announcement shows the scale and pace of British Gas' investment to bring the technology to all its customers as soon as possible.  

Chris Weston, Managing Director of British Gas, said: "Smart meters herald a new era for energy customers, bringing a transformation in the way they can manage energy use in their homes and businesses. Our £600m investment in Landis+Gyr's smart metering solutions means we can provide smart meters cost-effectively to our customers, and bring them the benefits of this innovative technology as soon as possible.

"British Gas is leading the industry in the deployment of smart meters as part of our commitment to reshaping the energy industry for the digital era, making it easier for customers to understand their energy use and keep bills under control."

Andreas Umbach, CEO, Landis+Gyr, said: "We've been working with British Gas for the last three years to develop smart meters for its customers. This is the largest deal of its kind worldwide and sets a new industry standard for working in partnership. It allows us to achieve significant economies of scale in meter production, to expand our UK operations and to further establish the UK as a global centre of smart energy excellence. This is great news for the industry and for our employees."

As a result of the deal announced today, Landis+Gyr expects to double its 600-strong UK workforce and extend its manufacturing facilities to meet not only the demands of British Gas's roll-out, but also those of its other UK customers as the roll-out gathers pace. 

British Gas has already announced more than 1,000 roles for Smart Energy Experts who will install smart meters and provide energy efficiency advice to households.  Today's announcement paves the way for the recruitment of 500 Smart Energy Experts in 2014.

Notes to editors:

1.       The average British household would save over £65 per year (£65.50) based on the 5% reduction in energy usage calculated by Oxford Economics, given the average annual dual fuel bill of £1,310 according to Ofgem. This does not take account of inflation or any change in energy prices.

2.       Today's announcement is in line with the pricing originally estimated in the Government's Impact Assessment for the smart meter roll-out.  This, in conjunction with recent DECC announcements regarding the award of contracts for the central communications infrastructure at lower costs than government estimates, should give confidence that the overall industry programme will be delivered within budgeted costs.

3.       British Gas and Landis+ Gyr have worked closely with a wide range of partners, including technology providers Trilliant and GEO, to develop the existing smart metering infrastructure for British Gas' customers.  The results of that development have been fed into the industry's work in defining the specifications and standards that will support the smart meter roll-out in Britain.  All the partners involved will work with industry, DECC and the new industry service providers it has selected to ensure all participants in Britain's smart metering programme benefit from the experience gained through its early deployment.

4.       Smart meters are a key part of the evolving smart grid.  They will enable Time of Use tariffs, which provide homeowners with lower prices for electricity used during off-peak hours.  By reducing peak demand, the need to build new power generation capacity in the future is also reduced.  They will also enable the use of microgeneration such as solar power and the local sharing of such energy in the community.

5.       British Gas has chosen to take a lead in the smart meter rollout. In doing so, it has established a smart meter supply chain, in-housed and refined its meter installation operation and dedicated call centre, and already created over 1,500 jobs in British Gas. British Gas has also conducted more than 30,000 customer interviews to ensure the smart meter experience continues to improve. British Gas has consistently seen satisfaction among smart meter customers at 40% higher than amongst those without smart meters.

SOURCE Landis+Gyr