Government figures show that the popularity of smart meters is growing and that they now make up 50% of all energy meters in the UK1. At a time when energy costs are rising, the government advice, backed up by extensive press and TV advertising, is that by replacing traditional gas and electricity meters with smart meters, consumers can understand more about the energy they use day-to-day and cut out unnecessary usage and spending.
The government claims that smart meters are underpinning the UK’s transition to a greener, more reliable energy system and their rollout will deliver more benefits to the country than it will cost. However, privacy campaigners have raised concerns about potential issues, while questions have been asked about the technology’s effectiveness.
But what are the pros and cons?
PROS
Reading the meter – As smart meters are linked to the supplier, the days of being disturbed by a meter reader making a physical inspection of your meters to calculate bills are long gone. Having a smart meter should mean that the cost saving of not having to employ someone to read an old-style meter will be passed on to the customer.
Real time monitoring – The display that comes with a smart meter helps consumers understand how much energy they are using in real time. So users can monitor exactly what is being used by any particular appliance and therefore manage their use more efficiently.
No more estimated bills – Forgetting to submit a reading on an old-style meter meant that the energy supplier would estimate usage based on past bills. These estimates can be inaccurate and lead to an unexpectedly high bill when an official reading is applied.
A smart meter sends an accurate reading of precise energy use to the supplier on a half-hourly, daily or monthly basis, so users are only charged for what they actually use.
CONS
Privacy – concerns have been raised that smart meter information relating to customers’ energy usage could be passed on to third parties without customers’ permission.
Constant checking – having the ability to know exactly which appliances use how much energy can lead to a compulsion to check the meter constantly to see how much energy their household is using at any given time.
Switching suppliers – if you switch suppliers, you might find that your smart meter loses its functionality. There are two types of smart meters on the market: SMETS1 and SMETS2. If you have a first-generation SMETS1 it might not work with a new supplier meaning a return to manually reading of the meter.2
Sources
1 – Gov.uk (2022) Smart Meter Statistics in Great Britain: Quarterly Report to end December 2021. Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1059591/Q4_2021_Smart_Meters_Statistics_Report.pdf (Accessed 26/09/22)
2 – Ovo Energy (2021) SMETS1 & SMETS2: Everything you need to know about the different types of smart meters. Available at: https://www.ovoenergy.com/guides/energy-guides/smets-1-and-2-new-smart-meter-generation (Accessed 26/09/22)
All the information in this article is correct as of the publish date 30 September 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
