2) Smart Meters will probably create a record of your power usage at half-hourly intervals
The data will be kept on central databases by the DataCommsCo (DCC ? not to be confused with DECC, the Dept of Energy & Climate Change) so that it can be easily accessed by a variety of parties. Thirteen months of data will also be stored on the Smart Meter itself.(ref 1)
Data this fine-grained inevitably creates a profile of what's going on at an address, when it's occupied, what times people are awake or cooking or showering, etc.
Ofgem acknowledges that this will be a step-change in the amount of information available(ref 2), and the Information Commissioner?s Office (ICO) says this does indeed constitute personal data under the Data Protection Act.(ref 3) Meanwhile, "Dutch courts have already found fine-grained central data collection by smart meters to be an unacceptable infringement of citizens' privacy and security".(ref 4)
It would not be surprising if the DCC database joined the DVLA records, phone records and the other long list of databases being illegally accessed by newspapers, private investigators, etc, either by technical hacking or social engineering.
The DCC or power companies will also be able to share your data with third parties. Supposedly you will be able to refuse permission for this, but given how cavalierly many organisations treat sharing your phone number and other personal data ? eg insurance companies selling information about accidents to personal injury lawyers(ref 5) ? it?s hardly a reliable safeguard.
And the data on the Smart Meter itself will be accessible to anyone who has access to the premises in the 13 months (eg abusive partner, fake meter reader, next tenant).
Why do the power companies want half-hourly data?
Clearly, it's not needed for accurate monthly bills. Nor is it used for the IHD, which works separately.
They want the data to interact with "smart homes" via your house's Home Area Network (HAN). This is a huge topic, explained more in Point 3. But in brief, allowing the power companies to vary their tariffs every half-hour, and have shared control of your smart home, are two of the main purposes of Smart Meters.(ref 6) The companies intend to offer lower priced packages in exchange for control/variable price, and correspondingly higher prices for the ordinary, constant power provision which is the norm at the moment.
Whenever the literature uses phrases like "innovative energy products and services", it means these control and pricing packages.
The ICO has been pushing for the use of aggregated, anonymised data wherever possible,(ref 7) eg for technical grid management. But it's clear that aggregated data is in direct conflict with the aim of controlling or variably charging individual households, and Ofgem foresees that, whatever the current grain of the data, half-hourly data may eventually be made mandatory.(ref 8)
Summary
Half-hourly data is being sought by the power companies to enable Time-of-Use pricing and shared control of smart homes (HANs). This aim has serious implications for privacy and personal security. The matter was unresolved as of March 2011 and a likely longterm outcome is that the poor will be economically forced to give up their data while the rich may or may not be able to choose.
References
(ref 1) Response to Prospectus Consulation: Data Access and Privacy, DECC & Ofgem, §4.4 ? 4.8
(ref 2) Smart Metering Implementation Programme: Consumer Protection, DECC & Ofgem, Summary
(ref 3) Smart Metering Implementation Programme: Consumer Protection, DECC & Ofgem, §1.13
(ref 4) "Who controls the off switch?", Ross Anderson, Cambridge University Computer Laboratory, Chap. IIA
(ref 5) "'Dirty secret' of car insurers: selling accident victims' details to no win, no fee lawyers" The Telegraph
(ref 6) Response to Prospectus Consulation: Data Access and Privacy, DECC & Ofgem, §4.3
(ref 7) Smart Metering Implementation Programme: Consumer Protection, DECC & Ofgem, §2.14
(ref 8) Response to Prospectus Consulation: Data Access and Privacy, DECC & Ofgem, §5.2