What are smart meters?
Smart meters are the next generation of gas and electricity meters. They use wireless technology to provide two-way communication between your home and your energy supplier. This allows your supplier to remotely read your meter and brings an end to estimated billing.
Smart meters can also provide information about how much energy you’re using. Some come with an in-home display that shows you how much power you’re using in near-real time, measured in pounds and pence.
What are the benefits of smart meters?
Here are some of the main benefits of having a smart meter installed:
Accurate bills – Because your supplier receives automated meter readings rather than estimated ones, your bills should be more accurate. No more trying to give accurate readings yourself.
Monitoring energy use – Smart meters and their in-home displays allow you to closely monitor your energy consumption. This can help encourage you to use less energy.
Automatic meter readings – There’s no need for meter readings by your energy supplier or for you to provide them. The meter wirelessly sends automated readings to your supplier.
Switching suppliers easily – If you switch energy suppliers, the new supplier can take over your smart meter without installing a new one. Your energy supply won’t be interrupted.
New tariffs – In future, smart meters could allow for innovative time-of-use energy tariffs. For example, cheaper rates when demand is low.
What are the downsides of smart meters?
However, there are some potential downsides to be aware of:
Installation disruption – To have a smart meter fitted, you’ll need to be at home to allow access to your existing meter. The installer will need to turn off power briefly.
New meters can be faulty – Like any electronic gadget, smart meters sometimes fail or develop faults. This can lead to billing issues that may take time to resolve.
Privacy concerns – Some consumers worry that smart meters are an invasion of privacy as they reveal data about how you use energy at home. Energy firms can collect very detailed data on your daily habits.
Cybersecurity risks – There are understandable concerns around hacking. Criminals could potentially access detailed data on when your home is occupied and your daily routines. However, industry experts claim smart meters have robust enough security to make this highly unlikely.
Cost to consumers – The smart meter rollout comes at a cost of billions to energy firms. Some of this may eventually be passed on to consumers through higher bills, although it is hard to quantify the possible impact.
Do smart meters lead to lower bills?
One of the big claimed benefits of smart meters for households is lower energy bills. In theory, being more aware of how you’re using electricity and gas should encourage you to reduce waste. However, evidence on real-world savings is mixed:
- A 2016 report by the Department for Business, Energy & Industrial Strategy found a 2-4% fall in energy use after smart meters were installed. It said each household could save around £26 a year.
- In 2019, research by ownit.co.uk analysed 12,000 households and found those with smart meters saved an average of £28 per year.
- Yet other analysis has found homes with smart meters have seen bills increase. Energy helpline said bills went up by an average £33 in 2019.
Much may depend on whether homeowners actually engage with their smart meter display and change their energy use habits accordingly. Also, some of the energy savings from having more accurate bills may be offset by the cost of installing smart meters.
So the evidence is mixed. Smart meters don’t guarantee lower bills but they can help you monitor usage more closely. Those who actively use their meter to reduce waste are likely to see some savings.
Do smart meters cut energy use?
Official figures show that households with smart meters tend to consume a little less gas and electricity than those without. But critics argue that the saving is not that significant:
Source | Reported reduction in energy use with smart meters |
---|---|
BEIS (2016) | 2-4% |
Ofgem (2017) | 2.8% gas, 3.88% electricity |
NOP (2017) | 3% |
These figures suggest that households with smart meters save around 3% on average. Critics argue such a modest saving won’t make a meaningful impact on energy efficiency and tackling climate change.
However, supporters argue that as the smart meter rollout progresses and in-home displays get better, the ability to track energy use in detail will drive greater savings. This is particularly true for households that actively engage with their smart meters.
There’s also evidence that the instant feedback provided by in-home displays offers a powerful way to encourage families to use less energy. For example, by turning off standby lights and thinking twice about using appliances.
Do I have to get a smart meter?
The smart meter rollout is being managed by energy suppliers, not consumers. The government has mandated that all homes should be offered smart meters by energy firms. But consumers themselves can refuse installation if they want to.
There’s no legal obligation for households to accept a new smart meter. Energy firms have to offer them to all customers by 2025. However, if you don’t wish to have one, you can opt out.
Some people do refuse smart meters over privacy concerns or due to reception problems in their area. If you refuse a smart meter, your supplier will likely need to keep visiting to take manual meter readings. Or you’ll have to submit them yourself.
Bear in mind that if you opt out, you won’t benefit from accurate bills and being able to monitor your energy consumption more closely. And over the coming years, smart meters will likely become the norm. Energy firms may start applying small surcharges for manually processing bills for those without smart meters.
Do smart meters increase cybersecurity risk?
Some media coverage has warned about smart meters being vulnerable to cyber attacks. Could hackers really access smart meter data and find out detailed information about when your home is occupied?
Energy firms insist that while no data systems are 100% secure, smart meters have enough protection in place. All data transmission is encrypted and individual meters can’t be accessed remotely without specialist knowledge. The risks are low compared to other connected systems we rely on daily.
Yet Which? has rightly warned that if large amounts of smart meter data were ever compromised, it could contain very detailed information on household activities. As the rollout continues, the industry must remain vigilant about cyber risks. It’s understandable some homeowners are reluctant about such data being transmitted wirelessly from their home.
On balance though, most cybersecurity experts believe smart meters represent a very small risk compared to security threats from our phones, laptops and payment cards. And energy firms have a huge commercial incentive to keep customer data secure.
Are smart meters compulsory?
The government’s aim is for every home in the country to be offered smart meters by energy companies by 2025. However, it’s important to understand the key facts about this:
- Energy firms are required to offer you a smart meter – you don’t have to accept.
- There is no legal obligation for households to have a smart meter fitted.
- If you refuse a smart meter, you can keep your existing analog meter.
- Your energy supplier cannot force you to upgrade to a smart meter against your wishes.
While the rollout is happening nationwide, smart meters remain optional. Households can decline them on the grounds of privacy, health concerns or just general reluctance. Refusal may mean manual meter readings continue to be required.
Do smart meters pose a health risk?
Some consumers have raised concerns about whether the wireless signals emitted from smart meters could pose a health risk. However, Public Health England carried out an extensive independent safety review and concluded there is no evidence such low-power signals are harmful:
- The radio waves emitted by smart meters are below international guidelines and equivalent to other everyday devices like phone masts and wifi routers.
- The consumption data sent is short and infrequent. A smart gas meter transmits for just 2 seconds a day.
- The signals are very low power and not harmful like x-rays or gamma rays.
- There is no evidence of health risks from similar signals coming from wifi, mobile phones and phone masts that we’re exposed to all the time.
Sensible precautions can further minimise exposure, like having the meter installed away from bedrooms or frequently occupied rooms. Overall though, Public Health England found no convincing evidence of any risk to people from the technology.
Do smart meters work reliably everywhere?
One common issue reported in the smart meter rollout is meters struggling to get a wireless signal in certain homes. This happens mostly in rural areas, very remote properties and in flats or basements where thick walls block signals.
A weak signal means the smart meter can’t communicate reliably with your supplier to send automatic readings. This means it effectively operates as a dumb meter again.
The government says around 13% of meters may currently face signal issues. But mobile network improvements are being made to cut this. Also engineers can often resolve it by fitting a small transmitter device if needed.
Location within your home can help. Meters rely on mobile phone signals for connectivity. If you get poor mobile reception, the meter can be fitted in a front room rather than a back room for better connectivity.
Should I get a smart meter?
For most homes, having a smart meter installed is likely to be beneficial on balance. The advantages of getting accurate bills, monitoring your energy use more closely and ending manual meter readings outweigh most drawbacks.
With every consumer technology upgrade, there are always going to be concerns about risks and transition issues. These evidently need monitoring as the smart rollout progresses. But overall, smart meters are a logical upgrade bringing Britain’s energy system into the 21st century.
You may initially feel ambivalent about having a smart meter fitted. But try to look at the bigger picture. Greater insight into energy use will help households cut waste and save money. Plus it paves the way for more smart technology like smart appliances and electric vehicles.
Provided security is robust and health risks are minimal as they appear to be, smart meters are a clear step forward in making our national energy grid smarter and more sustainable.
Conclusion
To conclude, smart meters aren’t without some valid concerns around privacy, security and technical issues in some homes. But the overall benefits seem to outweigh the disadvantages for most households.
Greater accuracy of billing, understanding your energy use better and easier switching make for a compelling case. And as the technology improves further, smart meters provide a platform for smarter energy management and consumption.
For those uneasy about wireless signals, location within the home can minimise exposure. And evidence suggests smart meters don’t present a significant health risk compared to all the other radio signals we’re exposed to from modern technology.
With all major national infrastructure upgrades, there is disruption, cost and adapting required. But overall, the smart meter rollout appears to offer important long-term benefits in making Britain’s homes smarter and more energy efficient.