Manx Utilities will begin replacing consumers’ electricity meters with smart meters from next year.
It will cost the authority £18.2m to do it.
MU chairman Alex Allinson MHK said that the cost would be spread over 10 years.
’That cost will not be passed on to the consumer,’ he said.
’We are going to be paying for that through our own income.’
The meters will send readings directly and securely and will not have to be read on location by a human being.
MU says it will help it meet its requirements to ensure the safety of, and accurate billing from, its meters.
The first stage will be to replace the current key meters with smart meters, beginning next year. They can be topped up online and over the counter to ensure full accessibility.
Manx Utilities says the meters ’will help create a smart grid for the future’, that ’will enable Manx Utilities to match all sources of energy supply to demand and in turn reduce waste and increase efficiency’.
Dr Allinson said: ’Smart meters are digital devices which will communicate between a customer’s home or business and Manx Utilities through a low-power and secure wireless communication network.’
The meters will record when and how much electricity the customer is using, and the cost of that electricity.
This allows people and businesses to monitor their usage and help save on their bills.
Data transmission will be via low-power radio frequency and will not use 5G or any other cellular technology and MU said that the transmission of the information will be limited to a few seconds over a 24-hour period.
The roll-out is expected to take about four years to complete the installation of some 50,000 meters.
MU said it will advise customers directly of when a smart meter will be installed in their property, at least one month ahead of the planned installation date, and carry out a full safety survey of their mains supply.
There will be no charge for the installation of the meters.
So will meter readers be made redundant?
MU says not. The authority says that all members of staff have been consulted about the change.
There would be natural wastage over the 10-year roll-out and meters will still have to be checked - but less frequently - to ensure they’re up to scratch on health and safety grounds.
Dr Allinson added: ’Smart meter deployment is far more than an equipment change.
’It will enable a progressive shift in how customers are able to consume energy and how they view their relationship with Manx Utilities.
’Smart meters will allow for greater integration of renewable energy sources - such as solar panels and wind turbines - helping the Isle of Man move towards a lower-carbon economy with smart technology, in turn facilitating the increasing number of electric vehicles and renewable energy sources that customers are choosing for their homes.’
In 2017, the government wrote off £95m of Manx Utilities’ £570m debts.
Manx Utilities, created by the merger of the Manx Electricity Authority and Water Authority, carried historical debts of £260m in bonds and £278m in Treasury loans.
The borrowing was used to fund investment in essential infrastructure, including the construction of Pulrose power station (pictured), the sub-sea cable and gas pipeline.
An independent review conducted by National Economic Research Associates before Tynwald’s decision, found that Manx Utilities’ net debts were almost 100% of its asset value.
It also found the electricity charges are 10 to 15% higher than in Britain, the water charge is relatively high and the sewerage rate relatively low.