Hi all... i work in the industry, and happy to clarify this is a government mandate.
The energy industry has to demonstrate its made EVERY effort to offer 84% of the country a smart meter by 2020.
If not they can be fined up to 10% of turnover. Of course the government haven't mandated that customers must have them, only that customers must be offered them.
The benefits are undoubtedly weighted on the side of the energy industry, but not in the ways described above. Yes its less effort/overheads to maintain customer accounts, bill accurately, switch customers to different tariffs or in and out of their supply, but that isn't really where the benefit is.
The real value to the industry comes at the SUPPLY level, not the billing level. The national grid its on its knees. Demand increases year on year. Current power stations cant support us and we currently buy in huge amounts of gas AND electricity from foreign markets (currently circa 20-25% of our electricity comes from France)
New power stations being built will take 15-20 years to complete, and until then keeping the right amount of gas and electricity produced, bought, stored, made available for 65 million people is incredibly complex and runs the completely feasible possibility of 'running out' of either fuel.
Remember the intermittent power, and black outs in the 70's/80s? When having gas central heating in a home was a luxury? Those days could easily come back unless a the industry can minutely and universally track and monitor consumer supply and demand. (as SpecialSubject described)
Ultimately thats what the program will deliver, it will take far longer than 2020 to see the benefits, and i can absolutely say that any cost benefits of such control would never be passed onto the consumer.
Just wanted to set the record straight, as I work for one of the big bad energy companies, and it is genuinely disheartening to hear people have such poor experiences and lay the blame on the suppliers.
The whole country needs the program to work, to ensure continuity of supply for future generations. The suppliers havent helped themselves in some cases, poor marketing, slow uptake, etc but the balls up in delivery does not fall solely on their shoulders.
Soap box over - happy to answer any questions! Im prepared for flames!