John Lahart (Dublin South West, Fianna Fail)
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320. To ask the Minister for Communications, Energy and Natural Resources his views on the ESB's proposed smart metering project and the tendering system for same; and if he will make a statement on the matter. [5218/17]

Denis Naughten (Roscommon-Galway, Independent)
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The EU's Third Energy Package stipulates "where roll-out of smart meters is assessed positively, at least 80% of consumers shall be equipped with intelligent metering systems by 2020." Member States across Europe are now at varying stages of smart meter rollout programmes and smart meters are also being rolled out in other parts of the world including the United States, Brazil, India, and China.

In Ireland, the National Smart Metering Programme, which includes both electricity and gas meters, is managed by the Commission for Energy Regulation. The regulator is developing a cost benefit analysis on the roll-out of smart meters. The cost benefit analysis results are due in the second half of this year and will be the key determinant in relation to the scale, scope and timing of the roll-out.

Over the next two years ESB Networks will be responsible for most of the procurements associated with the rollout of smart meters in Ireland and Gas Networks Ireland will be responsible for the rollout of gas smart meters. The largest of the ESB Networks' procurements are the communications technology that underpins smart meters and the electricity smart meters. Procurement of the communications technology commenced last year and the associated "Request for Tender" is due to issue this summer.

There are a range of benefits to be secured through the introduction of smart meters. These include accuracy, efficiency, increased competition and sustainability. Energy bills will be more accurate and timely as there will no longer be a need to physically read meters. Once consumers know more about their energy consumption they are likely to use less energy, be more efficient with it and therefore save money. People will be able to reduce their energy bills by shifting when they use energy from more expensive peak consumption times to less expensive times. By reducing the peak demand for energy, the peak market price will reduce, leading to savings for all energy consumers.