Britain is set to make smart electricity meters obligatory in homes as it steps up the fight against global warming, a well-placed source said yesterday.

The measure will be just one of many to be included in the government's Energy White Paper that is to be published in March and which will have as its two main pillars energy security and energy efficiency - from government to individuals.

"There will be legislation on metering in the White Paper," the source told Reuters.

Smart meters not only allow consumers to see exactly how much power they are using on a minute by minute basis but they can be remotely read by suppliers who can then tailor their output and tariffs accordingly.

Gas and electricity consumer watchdog Energywatch said in a 2005 report smart meters could help cut household consumption by between three and 15 per cent by encouraging users to switch lights and appliances off.

But it also said that extra action was needed to make them more widely used.

It said a smart metering replacement programme would produce annual savings equivalent to the output of a medium-sized power station running at full power all the time.

Another area where the government is considering action is on product standards such as energy consumption including standby switches which while making an appliance appear to be dormant still consume large amounts of electricity.

The International Energy Agency has calculated that appliances left on standby among its members consumed the equivalent of the output of 20 one gigawatt power stations.

However, the government's ability to act unilaterally is limited by competition rules in the European Union which state that differential product standards can be barriers to trade.

Separate from the White Paper move on metering, the government is bringing in a law that from June 1 all houses that are offered for sale will have to carry certificates rating their energy efficiency and carbon dioxide footprint.

The certificates will be issued by government-trained inspectors and will resemble the colour and alphabetical labels used on white goods like fridges and washing machines.

House buyers will therefore be able to see a property's energy rating even before they set foot in it and therefore be able to assess how much it might cost to improve it.

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