Jack Wall (Kildare South, Labour)
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Question 25: To ask the Minister for Communications, Energy and Natural Resources the position regarding the smart metering project; the capabilities of the smart meter; and if he will make a statement on the matter. [10508/09]

Seán Power (Kildare South, Fianna Fail)
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The rollout of the 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 pivotal part of the Government's strategy to significantly enhance management of energy demand and to achieve radical improvements in energy efficiency through the use of cutting-edge technology.

The current pilot phase of the programme is critical to informing from all perspectives the development of the programme. This is a highly complex technological project and the trials are essential to ensure that the optimum and most cost effective technology and systems are identified for implementation of the national smart meter programme.

The pilot phase, for both electricity and gas, was launched in September 2008. The results of the pilot project will inform both the timing of a national roll out, and the technologies and systems to be adopted. The pilot phase is scheduled to be completed by end 2010. The outcome should be fully informed conclusions on the most suitable model of smart meters/IT systems, tariffing structure, communications system which have the capability to deliver the anticipated benefits of smart metering in the specifics of the Irish energy market — notably the dispersed nature of the network reflecting settlement patterns.

The pilot phase encompasses two strands. The technology trial is testing a number of advanced metering systems and their associated IT and communications infrastructure. The technology trial involves the installation of up to 10,000 meters. The customer behaviour trial is determining the potential of smart meters to achieve measurable permanent change in consumer behaviour.

Participants for the customer behaviour trial are being selected to ensure that the sample is representative of consumers both in terms of energy usage profiles and geographical spread. Invitations to participate in the trial are being issued on a phased basis to electricity customers with 8,000 letters of invitation issued thus far. The number of participants needed for the electricity customer behaviour trial is 6,000. Installation of electricity meters for this strand of the pilot phase will be completed by mid year. As of 6 March, 2,223 meters have been installed by ESB Networks.

The participation of gas customers in the pilot phase is being progressed, with the procurement process for gas smart meters now under way. This should allow for the completion of the installation of meters for the gas element of the pilot phase before the end of 2009. Four models of electricity smart meter are being trialled in the pilot phase. The specifications of these metering systems will allow the testing of a range of functions, including, interval metering reading, time of use tariffing and the use of In Home Display devices, which, in turn, can facilitate demand management and increased energy efficiency. They will also provide reliable quality data on actual energy use which will inform better service to consumers through better fault monitoring and outage recording, power quality monitoring, reduced theft and losses and improved network planning.

The Commission for Energy Regulation (CER) is finalising its review of submissions from ESB Networks, ESB Customer Supply, Sustainable Energy Ireland, Bord Gáis Networks and industry participants, on the budget for the entire pilot phase. The CER advises that the cost of installing smart metering systems for the electricity module of the pilot phase is being estimated at €29.9 million. The cost of the gas module will be quantified following the procurement process currently under way.