Smart meters are one of the biggest changes consumers will experience when using their home energy supply

What are smart meters?

Meters that are, as the name suggests… smart. Smart meters automatically record the energy usage in a particular property, sending the data directly the the energy supplier.

They provide considerable advantages over older “traditional” meters in that they enable the energy supplier to provide accurate bills to consumers without requiring a meter reader.

Another nifty advantage of smart meters is that they are able to provide consumers with information on their electricity usage in pounds as opposed to the hard to decipher string of numbers on traditional meters.

Are they expensive?

Consumers do not pay for the cost of a smart meter. The unit is installed by your electricity company (who owns the unit) and is responsible for its upkeep in the event of any technical issues/breakdowns/etc. The cost to companies is going to be met through increases in energy bills for a period.

Will they save me money on my energy bills?

Part of the expected reduction in energy consumption is likely to come through changes in behaviour. Older meters clearly never provided up to date information on energy consumption and once people are able to quickly see the effect of their energy usage on their bills it is likely that many people will for example be more diligent about turning off their televisions from “standby” at night.

Will there be new tariffs

One of the suggested usages of smart meters is that they will be able to provide energy companies with the ability to charge different tariffs based on energy demand. In other words consumers using electricity at peak times and who place greater strain on the grid will be charged a high price.

It would be a similar principle to the off and on peak fares charged by train companies for example. It is a contentious issue as energy consumers are unused to the idea of differential pricing at times of peak demand, however it is likely that in meeting the energy needs of the UK this may become part of the energy equation.