Over the last ten years, the face of measuring energy use has changed. Smart meters have gone from an unusual exception to the common energy meter choice. The government has even set a target to have 100% smart meter coverage across the UK by 2039.
But many of those who haven’t made the jump over to smart meters – and even some of those who have – are left wondering with questions about them. What are the benefits and drawbacks? Do you need one – and if so how do you get one? Some people may not even know what a smart meter is.
In this post, we’ll shine a light on the facts around smart meters. We’ll cover everything from what one is, to how they work, to why you might want one – and why you might not. So if you keep hearing people talk about smart meters but still have unanswered questions, read on.
What is a smart meter?
Smart meters are a new type of meter to measure your energy usage. As well as accurately measuring how much gas and electricity you use, they also share your meter readings with your supplier automatically to update your energy bills.
How do smart meters work?
Smart meters record your energy usage – they take electricity readings almost constantly, and take gas meter readings at half-hourly intervals. They then share this information at specified intervals with your energy supplier using a secure network.
This means your energy bills are always accurate, rather than relying on meter readings, and that means you only ever pay for the energy you use.
What are the benefits of a smart meter?
Smart meters have a number of benefits, both for you and for your energy supplier.
No more meter readings
A well-maintained meter box might make it easier to take meter readings, but that doesn’t mean it’s not still a hassle. A smart meter takes that hassle away completely – no more braving the elements or digging around in the dark to take a reading.
As smart meters measure AND share your energy consumption information with your energy provider, you also don’t need to worry about submitting manual meter readings.
From your energy supplier’s perspective, they get regular readings which is more convenient for them. It also reduces the likelihood of them needing to send someone out to read your meter.
Keep your energy bills accurate
It is recommended that you submit a meter reading once a month, but not everybody does. And if you don’t your bills end up being based on estimates not actual meter readings.
Estimated bills mean inaccurate charges too. You’ll usually end up either overpaying or underpaying – neither an ideal situation. With accurate bills, you pay for what you use instead.
Again, this benefits your supplier as well, making your payments more reliable and reducing additional admin work.
Easier to track gas and electricity usage
When bills are high a lot of people try to cut down on how much energy they use. A smart meter makes that a lot easier, because your in-home display screen (IHD) is so easy to read.
This will show you exactly how much energy is being used, helping you to narrow down how much certain appliances impact usage. If you want to spot which appliances are using the most energy, this will certainly help.
Some IHD’s will even show usage in pounds and pence so you can see how much it costs to boil a kettle or run your dryer.
Encourages more efficient energy usage
When you can see exactly how much energy you’re using – and how much it costs – you can also see just how much you waste.
Seeing the numbers soar on a regular basis is a brilliant motivator towards reducing your carbon footprint and being more efficient with your energy usage. Cutting down on wasted energy will help save you money, and also cut down on your home’s CO2 emissions which benefits the environment.
Opens up access to cheaper tariffs
Energy suppliers often see benefits when you switch to a smart meter, including lower administration costs. This means many of them offer exclusive discounts or cheaper energy tariffs for homes that have a smart meter installed.
If you’re interested in bringing down your bills, speak to your supplier to see if they have any offers to take advantage of.
Is it compulsory to have a smart meter?
It is not compulsory to have a smart meter installed and, if your existing meter is still working and within its lifespan, your energy supplier can not make you swap.
However, if your energy meter does need to be replaced for any reason, you will likely have to have it replaced with a smart one, as traditional energy meters are not made anymore.
If this happens, you can request that the smart functionality of your meter is switched off. This leaves your smart meter with the same features as a traditional ‘dumb’ meter.
What happens if I opt out of getting a smart meter?
If you opt out of getting a smart meter and your current gas and electricity meters are still valid, nothing will happen.
As we’ve explained above, if your existing meter passes through its life span, or develops a fault and you need a new meter, if you opt out you will just receive a meter without its smart functions enabled.
The most notable impact this will have on you is that you’ll still need to supply regular meter readings to keep your energy costs accurate.
What are the downsides to having a smart meter?
Your smart meter may turn ‘dumb’
Unfortunately, having a smart meter installed does not mean you will always have access to its full functionality. First generation smart meters don’t have universal functionality. This means if you switch energy suppliers, there is a chance the smart functions will stop working.
This is to do with the transmitter and receiver technology. Now this is universal and most smart meters made after 2020 can be transferred over to a new supplier without any issue. However, if you have an older meter you may find yourself stuck giving manual meter readings again until you get a new meter. And you’ll not be eligible for a replacement until this one reaches the end of its life.
Not all homes can have one
If you live in an area with poor external phone coverage, you may be unable to use the smart functionality of your meter. If there isn’t sufficient signal to transmit the data across, then your meter won’t be able to share your meter readings.
While you can still get a smart meter in the hope that a new mobile network mast is installed to improve coverage in the area, in the interim you will need to submit meter readings manually.
Information about your energy usage could be shared for marketing purposes
One potential smart meter benefit for energy companies that is not so great for individuals is that information about your energy usage may be shared to third parties.
This can ONLY happen if you have given permission to your energy supplier. It is illegal for them to share the information otherwise. This means it should be easy to avoid, but you should make sure not to agree if you’re against the concept.
Am I eligible for a smart meter?
Almost everyone is eligible for a smart meter who doesn’t have one already. Government targets are to have 100% smart meter coverage and this means that energy suppliers are keen to ensure anyone who wants a smart meter, gets one. To find out more, read the smart meter guide from energy regulator OfGem
Can my current meter work in smart mode?
If you have recently moved into a new home and are unsure if your existing meter offers smart functionality, then Citizens Advice has a Smart Meter Checking Tool that may be able to help you.
You’ll need to supply your Meter Point Administration Number (MPAN) and your postcode in order to check. You should be able to find your MPAN on your energy bills.
How to get a smart meter
If you want a smart meter, the only people you should speak to are your energy supplier. They will likely contact you (if they haven’t already) to offer a new smart meter, but if you don’t the information on how to get one will be easy to find on their website.
The only other people you should speak to are Smart Meter GB.
It is illegal for anyone else to modify, repair or replace your energy meter – and that extends to smart meters. It is also incredibly dangerous.
Most energy suppliers will fit your new meter within a few months, completely for free. This means there really is no need to look elsewhere for one anyway.
What is the lifespan of a smart meter?
The average lifespan of a smart meter is around 10-20 years. This is shorter than traditional ‘dumb’ meters, which can last as long as 30 or even 40 years, however most would be replaced before then to ensure no loss of service due to your meter breaking.
The process of transmitting your energy readings will reduce the battery life of some meters, which is why they are shorter.
When your smart meter nears the end of its life, your energy company will contact you about coming out to replace it, as they will with dumb meters.
Do I need a new meter box for a smart meter?
Just because you’re changing over to a smart meter, does not mean you need to replace your meter box as well.
There is not a significant enough size difference between the two meter types to require a new box – there will be plenty of space in your existing meter box to house your meter.
If your meter box is old and starting to fail, it is a good idea to get a new one before (or soon after) your new meter is installed. A brand new over box will keep your new smart meter protected from the elements to give it the longest life possible.
A faulty meter box can let moisture get into your meter, which isn’t great when that meter has only just been fitted. It will also look smarter and maintain the kerb appeal of your home, which is never a bad thing.
Finally, the automation of a smart meter means you will likely check your meter box less often to take readings. Replacing your meter box will make sure your meter is well protected for longer, so you won’t need to check the condition of your meter box as regularly.
That, in a nutshell, are the most important things you need to know about smart meters. If you have any further questions, then you can contact your energy supplier who will be happy to help.