Utilities Cater to Frugal Energy Consumers

When Sam Laidlaw looks to the future, he sees his customers using less energy—not the cheeriest of visions if you’re in the business of selling power. Laidlaw, chief executive of Centrica, Britain’s biggest energy supplier, expects people to respond to higher global energy prices by using power more efficiently. Rather than bemoan a drop in demand, he sees an opportunity in home energy management systems. The utility hopes to install 2 million smart meters—devices that measure every detail of home power use—by the end of 2012. Centrica has spent $468 million over the past three years buying companies specializing in smart meters, as well as boilers, heat pumps, and solar installation.

Laidlaw faces a crowded field that includes IBM, supermarket chain Tesco, and consumer electronics maker Panasonic. More than 80 companies are dabbling in home energy management, looking for ways to get products into the 200 million U.S. and European homes forecast to be connected to smart-metering systems over the next five years, according to Bloomberg New Energy Finance.