Smart metering FAQ

The revolution starts now...

Tell me more about smart meters?

Smart meters are exactly how they sound. They will replace the largely outdated technology from the last century with state-of-the-art gas and electricity meters that will herald a revolution in the way you think about and use energy in your home.

Smart meters will bring about the end of estimated bills and home visits from meter readers. They will provide customers and energy suppliers with accurate information on the amount of electricity and gas being used. You will be able to monitor your energy use in real time, as well as to make informed choices about how to manage your energy. Quite simply keeping your existing meters is like sending a telegram instead of installing wireless broadband

What makes them so smart?

Smart meters will provide you with accurate information on the energy you use at home. You will be able to compare the amount of electricity and gas you use today against what you used the day before, the week before, the month before and even the year before.

It will also herald the end of inaccessible meters under the stairs and in cupboards. The information on your energy use will be provided through a hand-held display device, via the internet or even through a mobile phone. Access to the information will be two-way, with suppliers being able to read meters exactly and bill precisely what you use rather than working on meter readings or estimates. This will be the nail in the coffin of estimated bills. 

When will I be able to enjoy the benefits of smart meters?

A national roll-out of smart meters across Britain is being planned that will involve replacing 46 million meters in all 25 million homes across the country by 2020. This is a major technological and social transformation to rank alongside digital switch-over and the introduction of North Sea gas to homes in the early 1970s.

This is a huge undertaking and will involve a detailed and complex planning process with government, Ofgem and the energy industry before a national roll-out can even begin.  The planning process is expected to last at least two years before the first smart meters can be installed.

What’s in it for Mrs Jones at No37 Acacia Avenue?

Not only will Mrs Jones benefit from accurate bills, she will also benefit from:

• Real time information on energy use will benefit all consumers, particularly those most vulnerable to fuel poverty. It will allow everyone to understand the amount of energy they are using with different appliances around the home, the cost of that energy and how to reduce their bills and be more energy efficient.
• Companies will be able to offer new tariffs designed to reward consumers who use energy efficiently and at off-peak times. 
• Customers who have pre-pay meters will be able to switch instantly to the full range of pay monthly tariffs.
• We will all be able to reduce our carbon emissions and play a more active role in protecting the environment from climate change.
• Smart meters will also make it easier for customers who generate their own energy through solar panels or wind generators to sell it back to their energy company. This will encourage more people to generate their own energy and reduce their carbon footprint.

Why do energy companies want smart meters?
Smart meters will enable energy companies to become more efficient and effective in how they engage with their customers. This is not just because of the man-hours involved in visiting each house to read the meter, it is also because the back office processes needed to estimate bills and answer calls from customers giving current meter readings are extremely expensive and inefficient.

Energy companies will also be able to innovate and offer their customers new types of tariffs that will allow customers to take advantage of potentially cheaper deals at off-peak times.

What about businesses? Are they getting smart meters as well?

Our primary focus is on domestic electricity and domestic gas metering, but the operational framework we are currently developing could also apply to non-domestic customers and this is being considered. However, many medium and large businesses are already benefitting from having a form of smart meters installed.  The Government has mandated that large businesses will have smart meters within five years and is currently considering policy on smart meters for smaller businesses.

Why are smart meters being introduced now?

Climate change is high on the national agenda. The EU, the British government and the energy industry are looking for better and greener ways to produce and use energy. An important aspect in any attempt to tackle climate change is to promote energy efficiency in the home and smart meters are a key part of enabling consumers to use less energy. The Government has now completed their cost benefit analysis for rolling out smart meters across the country and has found a positive business case for doing this.

Can householders arrange for a smart meter to be installed now?

Not yet. The industry is very keen to begin a national roll-out of smart meters across Britain but it believes that in order to ensure there is a successful delivery programme it is essential that the planning stages are as thorough as possible.  The definition for smart meters needs to be agreed first by government and industry; otherwise, we run the risk of installing meters that are not compatible across the whole industry.

Is Great Britain leading the world in the roll out of smart meters?

Not quite. The United States, Canada, Italy, Australia, New Zealand and the Netherlands are among the countries already using smart metering technology. Now it’s time for us to catch up on the benefits offered by smart metering. Because others have already developed this technology, we can benefit from their experience and apply the lessons they have learned in our smart metering programme.

This is why the energy industry has committed to taking decisive action and, when Government provides the framework needed to move forward, we can begin the process of bringing the benefits of the smart meters to all British households.

Why are smart meters so important?

Many people are worried about the rising cost of energy and the rate of climate change. We are no longer an energy island and our supplies of North Sea oil and gas are depleting. We all need to think more about how much energy we use and the carbon we emit. Energy suppliers are legally required to reduce the amount of carbon that they use. Smart meters will enable this to happen on a large scale.