Terence Flanagan (Dublin North East, Fine Gael)
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Question 119: To ask the Minister for Communications, Energy and Natural Resources the reason smart metering has been launched as a pilot project in certain selected areas instead of making it available on a nationwide basis to those who want it; and if he will make a statement on the matter. [37201/08]

Joe Costello (Dublin Central, Labour)
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Question 166: To ask the Minister for Communications, Energy and Natural Resources the progress made in the trial phase scheme for smart electronic metres; the number of meters involved; when they will be fitted; the take-up of the trial scheme; the number of houses it will cover; when it will be completed; the cost of this scheme; the capabilities of the smart meters to be used; and if he will make a statement on the matter. [37119/08]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 119 and 166 together.

The roll out of a national smart meter programme is progressing in line with the commitment in the Government's Energy Policy Framework and in the Programme for Government. The Smart Meter programme is a central component of our strategy to significantly enhance management of energy demand and to achieve greater energy efficiency through the use of cutting-edge technology. The pilot phase, the electricity element of which is being led by ESB, is essential to inform the launch of a national scheme. This is a highly complex technological project and trials are critically required to ensure that we have the right technology and systems for the full roll out.

The pilot phase encompasses a technology trial which will test a number of advanced metering systems and their associated IT and communications infrastructure and a customer behaviour trial, which will determine the potential of smart meters to achieve measurable change in consumer behaviour. Participants for the customer behaviour trial are being selected to ensure that the sample is representative of Ireland's electricity consumers both in terms of usage profiles and geographical spread. The incorporation of gas customers into the pilot phase is being progressed. The pilot phase was launched on 15 September last. The response to the first round of invitations to participate has been positive with 30% of customers contacted expressing an interest in participating. The number of participants needed for the customer behaviour trial is 6,000.

The technology trial will look at meter functionality and supporting information and communications systems. There are many challenges involved in developing a metering system for Ireland that will facilitate the dispersed nature of our population and by extension the electricity network. This trial will involve the installation of 15,000 meters. Installation of meters for the pilot phase is under way and is expected to be completed by mid next year.

The functionality of the meters to be tested in this pilot phase includes half hourly meter reads instead of the current bi-monthly reads. This will enable a move to billing on the basis of time of use, which is far more cost effective. Advanced meters can be read remotely which does away with estimated bills. This will result in reduced costs for suppliers and improved service for consumers. Testing the capability of advanced meters to distinguish between the import and export of electricity will also form a key part of this pilot. This will facilitate the development of microgeneration where consumers generate their own electricity and sell surplus electricity back to the system.

The pilot phase overall will last eighteen months in total. This will facilitate the introduction of smart metering initiatives and resulting electricity consumption behavioural changes measured. It is important to have a trial lasting a full year so that seasonal changes in usage are captured for peak demand management purposes. The results of the pilot will inform the timing of a national roll out. The costs of the pilot to end 2008 will be approximately €6m in total. As part of the preparation for the 'go live' of the pilot, the Commission for Energy Regulation (CER) is currently considering submissions from the ESB on the budget for the entire pilot phase.