British Gas customers are set to benefit from a £600m deal between British Gas and Landis+Gyr.

The landmark deal, announced today, means Landis+Gyr will supply the majority of the 16 million smart meters British Gas will install in its customers' homes.

By 2020, smart meters will be rolled out as standard to homes and businesses across the country as part of a Government initiative. They will replace current gas and electricity meters and offer the benefits of:

• An in-home display showing how much gas and electricity is being used as customers are using it – and the cost in pounds and pence

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• Estimated savings of around 5% (£65) per year

• Meter readings sent directly to energy suppliers, putting an end to estimated bills.

British Gas adopted a strategy to introduce smart meters into homes and businesses early in order to bring these benefits to customers as soon as possible, and currently leads the industry with more than a million meters already installed in customers' homes and businesses.

Today's announcement shows the scale and pace of British Gas' investment to bring the technology to all its customers as soon as possible.

Chris Weston, Managing Director of British Gas, said: "Smart meters herald a new era for energy customers, bringing a transformation in the way they can manage energy use in their homes and businesses. Our £600m investment in Landis+Gyr's smart metering solutions means we can provide smart meters cost-effectively to our customers, and bring them the benefits of this innovative technology as soon as possible.

"British Gas is leading the industry in the deployment of smart meters as part of our commitment to reshaping the energy industry for the digital era, making it easier for customers to understand their energy use and keep bills under control."

(CD/JP)