The British government yesterday said that energy suppliers will have to install smart meters in all homes by 2020.

Smart meters will allow customers to monitor their energy use, enabling them to curb their use to save money and slash carbon emissions.  

Installing 47 million smart meters in 26 million homes will cost around 8.6 billion pounds or nearly 340 pounds per household.

Consumer groups have asked the government to prevent energy companies from passing the full costs on to the consumers.  

According to an estimate, smart meters will allow each household save 28 pounds per year.

Speaking on the issue, minister for Energy & Climate Change Lord Hunt said, “Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills.”

Smart meters are seen as a first step towards creating smart grids.