energy 39 and developed in accordance with the following stages of evolution .
Typically technology , including Smart Meters and Demand Response , has been introduced following an inverted evolution whereby technology and utility based communication has been at the fore-front , with consumer education and feedback as well as public communication being introduced as a next-step or reaction to negative publicity .
These findings do not mean however , that Smart Meter roll-out should be delayed , nor that consumers should be able to opt-in to Smart Meters . Whereas Demand Response has been shown to be more effective following opt-in , Smart Meters should be seen as a facilitating infrastructure . As with all public infrastructure , from trains to airports , roads to busses and energy transmission lines , not all who paid initially benefited equally , if at all , but the benefit to society is seen as great enough to justify the investment .
From the early days of competition in electricity markets , it was shown that switching rates were much lower when the installation of a new meter was a pre-requisite , for reasons of both cost and hassle . For the same reasons and because marketing of Demand Response offerings will be so much simpler when the supporting infrastructure is already in place ( as supported by additional empirical evidence from markets such as The Netherlands and Germany ), it would perhaps be a false economy to allow opt-in for Smart Meter installation ( as opposed to opt-in for personal data exchange for which opt-in may make sense ) if they are deemed necessary for the future of Demand Response .
Of course not all consumers would voluntarily participate in Demand
Response ( our estimate is around 30- 50 % during the first five years or so following the availability and effective mass marketing Demand Response ), but the uptake of Demand Response services would undoubtedly be far less without the mandating of Smart Meters . Consumers could though be provided with the option to upgrade or reconfigure their Smart Meters and allow the exchange of personal data if they so wish , in order to facilitate more advanced offerings .
Whichever approach is taken , crucially consumers must have access to their own consumption data , past and present , for free and any data transfer and usage must require their prior consent .
Regardless of the other benefits or costs of Smart Meters , if we want effective Demand Response , it would seem to make sense to have Smart Meters in the name of the environment .