"The meters would allow accurate bills and better information about energy use, allowing consumers to take steps to reduce it," the CBI's Going the Distance report stated.
It added: "These meters will be key to influencing consumer behaviour."
However, the CBI notes that despite support for the new technology - with the government claiming there will be a smart meter in every home by 2020 - very little has been done to progress the adoption of them.
If the government does not stick to its smart meter pledge the UK may not be able to hit its 2020 climate change targets, according to British Gas's director of smart metering Peter Allison.
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