We came across this great article recently which should be taken as a stern warning for UK based utility companies as they attempt to roll out smart grid technologies.

It’s basically a tale of woe based on the experience of US utilities and their apparent inability to sell the benefits of smart metering to their customers. The lesson is quite simple, focusing solely on savings is not going to convince a sceptical customer base to buy into the smart metering ideal. In doing this, several US utilities have fallen into the trap of trying to justify a significant upfront investment with a relatively small customer saving. The example cited here is Connecticut Light and Power trying to sell the idea of a $411 meter against a 20 year customer saving of just $11!

Instead utilities should be focusing on the increased reliability and OPEX improvements that smart metering provides and should also be less dismissive of genuine consumer concerns around privacy. Smart metering appears to be quite a difficult sell in the US. A pressure group in Illinois has just released a 4,000 signature petition calling for a referendum on the roll out of smart meters. So, UK utilities have been warned, it’s time to get their best marketing people on the job.

Starting in 2013 that means the national roll-out of up to 35 million electricity smart meters across the country at a cost of around €4.3 bn.

The news was announced by French minister for Industry Eric Besson who claimed that 7 million of the meters (known as “Linkys”) would be deployed by the end of 2014, with the remainder due for national roll-out by the end of 2018. This would out the French well ahead of the EU’s 2020 target.

The installation is to be carried out by ERDF, the largest distribution system operator in France and a division of energy company EDF. The project is expected to generate more than 10,000 jobs for the French economy and should help French companies gain valuable experience and a headstart in the soon-to-explode smart grid market.

Not everyone’s delighted with the news though, new figures seen by Le Parisien newspaper suggest that the average French consumer could see a rise in energy prices (€2 per month and a one-off €42 charge) unless the French goverment makes the decision to subsidise the cost of these 35 million units.