James Bannon (Longford-Westmeath, Fine Gael)
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Question 79: To ask the Minister for Communications, Energy and Natural Resources the progress made to the roll out smart metering in homes and business across the country; and if he will make a statement on the matter. [43659/08]

Liz McManus (Wicklow, Labour)
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Question 89: To ask the Minister for Communications, Energy and Natural Resources the progress made in the pilot scheme for smart electronic metres; the initial timeframe given for delivery of the pilot scheme; the number of people approached to take part in the pilot scheme; the number of people who agreed to take part in the pilot scheme; when the pilot scheme will be completed; the cost of the pilot scheme; the projected total cost of the overall scheme; and if he will make a statement on the matter. [43615/08]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 79 and 89 together.

The rollout 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 the 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, will critically inform the launch of a national scheme. This is a highly complex technological project and the trials are essential to ensure that we have the right technology and systems for the full rollout.

The pilot phase encompasses two strands — a technology trial, which is testing 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.

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 reflect the dispersed nature of our population and, as a result, 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 2009.

Testing the capability of advanced meters to distinguish between the import and export of electricity will also form a key part of the technology trial. This will facilitate the development of microgeneration where consumers generate their own electricity and sell their surplus back to the grid.

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. Invitations to participate in the trial are being issued on a phased basis with 8000 letters of invitation issued thus far. To date the response has been very positive with 36% of electricity customers contacted expressing an interest in participating. The number of participants needed for the electricity customer behaviour trial is 6,000. The incorporation of gas customers into the pilot phase is being progressed.

The pilot phase overall was launched on 15 September and 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 pilot phase is expected to be completed at end December 2010 and the outcome should be a fully informed decision on the most suitable model of smart meter(s)/IT system(s), tariffing structure, communications system and demand stimuli, all of which works effectively and has the capability to deliver the anticipated benefits of smart metering in the Irish market.

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 ESBN, ESBCS, SEI, BGN and industry participants on the budget for the entire pilot phase.

The cost of a national rollout will be quantified when the pilot phase has been completed and the preferred metering system capable of delivering the level of functionality required for smart metering in the Irish market has been selected.