Smart meters have been around for over a decade and make up 54% of all meters in the UK. By the end of September 2022, over 30.3 million homes had them installed. Read more about this report.
Smart Meters can be a great way to save some money on your energy bill. Learn more about smart meters and their benefits here.
What is a Smart Meter?
Smart Meters are devices that measure and record electricity and gas consumption. They're called "smart" because they communicate with your energy provider via digital technology. Smart Meters typically come with a small, digital, in-home display that shows your energy or gas consumption in kilowatt-hours (kWh), allowing you to see how much energy you are using and how much it costs you. This allows you to make more informed decisions about the energy you consume. Smart meters include a built-in communication system that allows both yourself and your energy company to remotely access them to see how much energy you are using.
If you switch supplier and have a first-generation smart meter, you will still be able to monitor your usage with the in-home display, but the new supplier might not be able to communicate with your meter temporarily as it was installed by your old supplier. First generation smart meters are being moved onto the national communications network, this is done remotely without consumers needing to take any action, and priority is given to meters which have temporarily lost some of their smart functionality. Read our guide on smart meters.
Benefits of Using a Smart Meter
Automatic Meter Readings
One advantage of using a smart meter is that it takes automatic meter readings. Smart meters eliminate the need for a person to physically visit your home to read your meter, and even if there is a change in your tariff, your supplier can pull the readings automatically. They also allow more frequent data collection, which means you are only billed for the energy you use, rather than estimates based on previous months' usage, which may or may not be accurate.
Potential for Savings
Smart meters help you save money by providing a more accurate picture of your energy usage. This allows you to lower your bills if you use this data to cut back on high use activity, or to reduce usage at more expensive times. Also, some suppliers have signed up to National Grid’s Demand Flexibility Service so they can offer rebate schemes when you cut your electricity usage at peak times.
Exact Energy Usage
Smart meters track energy consumption by sending regular updates to your energy supplier. This information is used to measure energy usage and create detailed reports. Smart meters record how much energy is used at different times of the day as well as how much energy is used overall, which is then used to calculate your exact energy bill.
Track Energy Usage in Real-Time
Smart meters monitor the amount of electricity being used at any given point to track energy use in real-time. On an hourly, daily, or monthly basis, the meter will record the amount of energy being used in your home.
Things to Consider Before Installing a Smart Meter
Communication Signal
When having a smart meter installed, the supplier will check the signal in your area and install the equipment needed. In some cases, they might be unable to get a signal which means that the meter would work like a traditional meter and need to be read manually or the usage would be estimated by your supplier. However, according to the Data Communications Company (DCC), Smart meter communication coverage is currently available to 99% of UK households, so this shouldn’t be a problem for most.
Smart Meter Monitoring
If you want to find out what appliances are using the most energy, you will need to monitor your smart meter display closely at the time of use. This can give you a closer look at what appliances are energy efficient and on which appliances you could potentially change their settings, so they consume less energy. Or simply reduce the use of that appliance as much as possible.
Saving Money is not Guaranteed
Although Smart Meters are designed to make monitoring your energy bills easier and help you save money, they are not guaranteed to reduce your bills. It will only help you save money if you use the information provided to make changes to your energy usage habits as this is what will result in lower energy bills. Here are some more tips for saving money on your energy bills.
You can read more information on energy meter on our meters information page.