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The majority of British Gas’ 16 million smart meters to be supplied by
Landis+Gyr
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Landis+Gyr expects to double its UK workforce as a result
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500 British Gas Smart Energy Experts to be recruited to install meters
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:
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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
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Estimated savings of around 5% (£65) per year
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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.
ENDS
Notes to editors:
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.
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.
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.
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.
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.
About British Gas: British Gas is the UK's leading energy supplier, and
serves around 12 million homes in Britain – nearly half the country's
homes – as well as providing energy to one million UK businesses.
British Gas provides value for money, dedicated customer service,
innovative energy solutions and the highest quality Home Services
expertise in the country. Find out more at www.britishgas.co.uk.
About Landis+Gyr:
Landis+Gyr is the leading global provider of integrated energy
management products tailored to energy company needs and is unique in
its ability to deliver true end-to-end advanced metering solutions.
Today, the Company offers the broadest portfolio of products and
services in the electricity metering industry, and is paving the way for
the next generation of smart grid.
With annualized sales of more than US$1.6 billion, Landis+Gyr, an
independent growth platform of the Toshiba Corporation (TKY:6502) and
40% owned by the Innovation Network Corporation of Japan, operates in 30
countries across five continents, and employs 5,200 people with the sole
mission of helping the world manage energy better.
