By 2015 more than 110 million homes in Europe will have smart electricity meters to tell us how much power we are using, according to a report.

Swedish analysts Berg Insight believes that the rise of the smart electricity meter will grow at a compound annual rate of 17.9 per cent - giving the figure of 111.5 million in five years' time.

"Providing consumers with detailed information about their electricity consumption the new generation of meters give customers control over energy costs and create financial incentives for energy savings," explains the report.

"Moreover smart meters constitute the core building blocks in future smart grids that will incorporate a wide range of technologies related to renewable generation, distribution network optimisation and energy conservation."

UK lead

British Gas' decision to offer its customers smart meters is mentioned in the report, which suggests the UK, along with France and Spain, will lead the charge for the technology.

"The UK's largest electricity and gas retailer British Gas has launched the first major smart metering project for residential customers in the country, said Tobias Ryberg, Senior Analyst, Berg Insight

"These developments in combination with rollouts in several other European countries will drive strong market growth over the next five years."