British Gas signs 600mln pound smart meter deal

By John McGarrity

LONDON, Sept 16 (Reuters) - British Gas on Monday said it signed a 600 million pound ($950 million)deal with technology company Landis+Gyr to supply most of the 16 million smart meters to be installed in UK homes, a move that could cut energy bills and create 600 new jobs.

Britain's government wants most of the country's homes to have smart meters by the end of the decade, a move intended to cut energy use in western Europe's biggest gas consumer.

"Our 600 million pound 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," Chris Weston, managing director of British Gas, said in a news release.

Digital (Milan: DIB.MI - news) smart meters will replace existing gas and electricity meters so that homeowners can monitor their energy use more accurately, leading to an annual average saving of 65 pounds once installation costs have been factored in, according to an estimate by Oxford Energy Economics.

The deal with British Gas, owned by energy company Centrica (LSE: CNA.L - news) , could prompt a doubling of Switzerland-headquartered Landis+Gyr's 600-strong British workforce, the joint statement said.

Landis+Gyr, one of the world's biggest suppliers of smart meters, is owned by Japanese technology conglomerate Toshiba .