What is a smart meter?

It’s a device that measures your actual gas or electricity use and electronically sends the information to your energy supplier, ending the need for someone to take meter readings. This means you only pay for the energy you use, making estimated bills – which often lead to people paying too much or too little – will be a thing of the past.  The meter shows exactly what it costs in pounds and pence, so no more nasty surprises. It can also show you how much energy you are using in kilowatt hours (kWh) or CO2 emissions.

How do you get a smart meter?

Your energy company will get in touch to arrange a suitable time and date or you can contact it to make an appointment. The meter will be fitted by a trained installer from the energy company or a firm working for it. You’ll need to be home for the installation appointment which takes on average about 1.5 hours, according to British Gas.

What is the cost?

There is no cost to the householder. Energy companies are required to provide and install smart meters for free. It costs energy firms about £270 per installation, the Institute of Directors has estimated. Analysts say the cost will be funded by customers through higher energy bills.

How will it cut my bills?

A smart meter by itself won’t cut bills, but it can help consumers become better informed. The devices include an in-home display which shows how much energy a household is using in real time and the cost. The installer should show you how to use this. Householders can track how much energy they use during the day, at night and peak times. It can be a great tool to better understand your energy consumption and discover ways to reduce usage and bills.   For example, the cost of running appliances, such as dishwashers or clothes washing machines, at off-peak times compared to during the day.

Research on some of the first customers who had smart meters installed has shown they have reduced their energy consumption by 1.5-2 per cent.

Do I have to have a smart meter?

No. Government has a target to install one in every home by 2020. Energy suppliers have told they must install 53 million smart energy devices in 27 million homes by this deadline or face fines. However, customers have the right to refuse a smart meter. The scheme is optional. The onus is on suppliers to persuade consumers of the benefits. 

Do I need separate meters for gas and electricity?

Yes. You’ll get two meters – one for gas and one for electricity (or just one for electricity if you don’t use gas). The smart electric meters are slightly bigger than the old-style electric meters whereas the gas ones are smaller than the current gas meters.

What happens if I switch supplier?

The UK Government, uniquely in Europe, has allowed each supplier to develop and install its own smart meter technology.  This means if customers switch energy provider, their smart meter may no longer work as different providers use different types of technology which aren’t compatible. Therefore, when you switch, the meter may need to be turned off for a while and the new provider install a new one. Consumer watchdog Which? says most householders are not warned of this when they look for cheaper deals. About 866,000 smart meters are currently operating in ‘dumb’ mode, according to Which? Householders are now being advised to wait for the next generation of meters capable of working with all suppliers.

When is the second-generation meter available?

The smart meter roll-out started in November 2016. If you have one already, it’s likely to be a first-generation model. These are known as SMETS1 or Smart Metering Equipment Technical Specification 1. In 2018, several energy companies started installing small numbers of second-generation meters (SMETS2) that can communicate with different suppliers. There are plans to install them more widely in the coming months. Twelve energy companies have been given permission to continue installing SMET1 meters until 13 January 2019, according to Which? This means customers of British Gas, E, Ecotricity, Eon, First Utility, Npower, Our Power, Ovo Energy, Scottish Power, SSE and Utility Warehouse may not be able to get a second-generation meter until 2019.

There are also plans for a remote “communication hub” that should enable SMETS1 meters to work with different suppliers – and so avoid the need to replace them with SMETS2 meters. However, the hub which has already been delayed several times, is not due to become available until mid-2019.

Can I get a smart meter if I have solar panels?

If you have solar panels, wind turbines or any other microgeneration system you can get a smart meter, according to Smarter Energy GB, the organisation behind the smart meter roll-out.  However, your in-home display will only show the amount of energy you are drawing from the grid and what it’s costing you. At present, you can’t use the smart meter to measure the amount of energy you have generated from solar panels and sold back to the grid. This may change in the future, but it’s not clear when.

Can I get a smart meter if I’m on an economy tariff?

Economy 7 and 10 are energy plans, that can help you pay less for your electricity. Basically, householders pay normal prices during the day and cheaper rates at night. Householders need to sign up and special meters are installed to record your energy use overnight. Some suppliers who offer Economy 7 and 10 are also installing compatible smart meters. When the second generation of smart meters is rolled out, all suppliers will be able to support Economy 7 and 10, says Smarter Energy GB.  There should be the potential for more off-peak energy pricing tariffs in future.

What are the benefits for everyone?

The government views smart meters as a vital upgrade to the UK’s energy system. The idea is smart meters will encourage people to reduce energy consumption and emissions. The technology has the potential to make our gas and electricity usage more cost-effective, greener and less wasteful. But the £11bn roll-out has not been without its problems.