A project to trial electronic smart meters in 15,000 homes across the UK has begun.

Industry regulator Ofgem has invested £10m in the two-year initiative, a figure matched by the four co-operating energy suppliers, EDF, E.ON UK, Scottish & Southern Energy and Scottish Power.

In addition to the 15,000 households receiving fully operational smart meters – which offer detailed, real-time feedback on power consumption – a further 8,000 homes will be provided with standalone display units, showing users the cost of their energy use in pounds and pence.

Ofgem chief executive Alistair Buchanan says the scheme aims to investigate how consumers react to domestic use of the new technology.

'Our initial work suggests that smart meters are the future - the end of the meter reader, the ability to meter homemade electricity sales back onto the grid and vastly improved consumption data available within your home,' he said.

'These trials will provide us with firm evidence and hard facts about the benefits smart meters can bring.'

Ofgem has also set up a steering group to help accelerate adoption of the new devices. Representatives from energy suppliers and other relevant bodies will meet to discuss potential changes in industry regulations, as well as set standards for the meters.

Analyst Datamonitor predicts a surge in European uptake of smart meters over the next five years.