The government is considering plans that would require energy suppliers to install smart meters in all but the smallest businesses within five years.

Smart metering provides more accurate, real-time tracking of electricity consumption, giving customers greater insight into, and control over, usage.

The technology is being tested in homes by providers including Centrica and EDF, but government backing for nationwide business rollout is part of plans to change the relationship between suppliers and customers.

‘From 2012, we want to support a transformation in the way suppliers view their relationship with the end consumer, shifting the focus to the provision of energy services, rather than simply selling units of energy,’ says the Energy Review, which was published last week.

Smart metering will increase the pressure for green IT, says David Roberts, chief executive of blue-chip user group The Corporate IT Forum.

‘As usage levels are highlighted firms will, in turn, look for suppliers with kit that has lower consumption ratings,’ he said.

‘It might also help businesses to change their habits, encouraging people to turn PCs off at night, for example, because it will show exactly how much power is used.’

Some IT suppliers are already looking at how to make their products more environmentally friendly. The green business unit launched by IBM this month aims to reduce power consumption within clients’ IT departments by 42 per cent.

Smart metering for all UK businesses will need a multimillion-pound technology investment from utility companies. But the potential benefits to customers are also significant. Trials by green advisory group the Carbon Trust predict savings of £300m and 2.5 million tonnes of carbon annually, if the technology is rolled out nationally (Computing, 17 May).

There are also potential benefits for energy suppliers – more efficient billing and debt recovery processes, for example.

But with major up-front costs, the energy sector needs a clear commitment from the government to justify the investment. This week’s white paper is a step in the right direction. But it could have gone further, says Energy Retail Association director of corporate affairs Russell Hamblin-Boone.

‘If a company is going to make such a long-term investment, there needs to be government support guaranteeing the sector is not going to go off in lots of different directions,’ said Hamblin-Boone.

‘The quicker the government makes the commitment, the quicker the industry can get the investment going,’ he said.