Smart meters are the next generation of electricity and gas meters.
They will bring about the end of estimated bills and meter readings, and provide customers and energy suppliers with accurate and timely information on the amount of electricity and gas being used and the cost of that energy.
Smart meters will allow the energy company to read the meter remotely, without having to send a meter reader. This will also mean that customers receive accurate bills every time instead of estimated bills.
Energy companies will also offer their customers in-home display devices which will show energy use and the cost of that energy.
Benefits of smart meters
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Accurate billing
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Timely information on the amount of gas and electricity used in the home at any moment and how much it costs
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Customers will be able to save energy and money
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New time-of-day tariffs will encourage customers to use less energy at peak times and help networks to manage demand more efficiently.
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Customers will be able to switch quickly and easily between pay-as-you-go and pay-monthly tariffs without the need for a replacement meter
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Customers will be offered a range of alternative means of displaying their energy consumption, for example through new and better energy display devices, mobile phones, the internet or via digital TV. It is hoped that this will drive greater competition in the domestic energy market
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Customers who generate their own electricity, for example through wind or solar power, will be able to see how much energy they are exporting to the grid
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Once deployed, smart meters will help cut costs for energy companies because they will no longer need to visit homes to read customers' meters. They are also likely to save money on customer services and back office systems that support the outdated estimated billing
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Smart meters will allow energy companies to improve the standard of service that they offer to customers. They will have a better understanding of their customers' energy use and will be able to personalise their communication based on this
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Smart meters may also speed up the process of switching, as both the old and new supplier will have access to accurate meter readings from the point of switching
The smart metering programme
DECC, the regulator Ofgem and Britain's major energy suppliers have begun work to plan how this national programme will be carried out. It will be the biggest change in energy industry since North Sea Gas was piped to British homes in the 1970s. the smart meters campaign.
You can learn about the history of the smart meters campaign on the Energy Retail Association website.
