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The government hopes that if people can see how much energy their PCs and gadgets are using whilst not in use, they might change their behavior.

"Changing consumer habits is vital if we are to cut our energy use and reduce the impact of climate change," the new Business and Enterprise Secretary, John Hutton, claims in a statement.

"Smart meters provide the cutting

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edge technology to enable this to happen. The results of the trials will provide invaluable evidence to support the future rollout of displays and smart meters; helping to cut consumer bills and cut our carbon emissions."

Forty thousand homes will be taking part in the energy saving trials, with 8,000 homes being given clip on real time display units for their existing meters and others testing other ways to cut energy waste.

EDF Energy, E.ON UK, Scottish and Southern Energy and Scottish Power are to conduct the trials, with the help of a £10m grant.

Smart meters, whereby customers can see on a small screen how much energy each household appliance is using at any time, are seen as a key tool for cutting energy waste.

"Smart meters have great potential to help customers better understand their energy consumption and encourage energy efficiency," Alistair Buchanan, the chief executive of UK energy regulator Ofgem, says in a statement.