Energy monitors: Smart meters and energy monitors explained Smart meter roll-out

Smart meter roll out

The official smart meter roll-out is happening between 2014 and 2019

Old-style gas and electricity meters are being replaced by smart meters, under government plans. Smart meters measure your exact gas and electricity usage and then send all the information back to your energy supplier – either directly, or via a data-processing centre – without the need for someone to come and take your meter readings.

What will the smart meter switchover mean for you? Here we answer key questions about the roll-out.

When are smart meters being rolled out?

Some energy companies have already started to install smart meters but the official national smart meter roll-out will start in 2014 and finish in 2019. 

However, Which? believes that system is flawed and is calling on the government to stop and review the smart meter roll-out.

Why is Which? calling for a halt to the smart meter roll-out?

A key concern is that the cost of the roll-out, which is already significant, could spiral with no one keeping an eye on the money being spent by the energy industry or how it is being passed onto consumers.

At the moment, energy companies are leading on the smart meter roll-out and are expected to pass through costs to consumers via their bills. Meanwhile, the government strategy to rely on competition in the energy market to keep the cost of the roll-out under control is naive and unlikely to work.

Furthermore, as reflected in the discussions on Which? Conversation, there are significant issues with consumer trust in smart meters, including concerns about the cost of the roll-out, data security and health concerns.

Which energy companies are already offering smart meters?

British Gas is offering selected existing customers with old meters that need replacing the chance to get a smart meter installed. It has committed to installing two million by the end of 2012. The British Gas smart meter also comes with a free in-house display unit, which shows you your energy use in real time.

One of the smaller energy companies, First Utility, also offers smart meters to customers who sign up to its Smart as Standard tariff. It says it aims to install your smart meter within a maximum of 60 days from your supply going live. The First Utility smart meters don't currently come with an in-house display – instead there's an online service through which you can view your daily energy consumption and monthly bills.

Many of the other big energy companies are conducting small-scale smart meter installation trials before the national roll-out starts. 

first utility smart meter

First Utility is already installing smart meters in homes

Do I have to have a smart meter?

No, not at the moment. But eventually you will probably be required to switch your old gas and electric meters to a smart meter, once the national smart meter roll-out begins.

How much will a smart meter cost me?

There will be no upfront cost to customers being upgraded to a smart meter – and a smart meter will put an end to estimated bills, so you'll only be paying for the gas and electricity you use. 

According to government estimations, the average customer will save £23 a year on their energy bills by 2020 as a result of the roll-out, though those savings will be dependent on households actively changing their energy-usage habits.

Metering charges are already included in your gas and electricity bills. However, the cost of installing smart meters on a national scale – which energy regulator Ofgem estimates will cost around £11bn – is also likely to be passed on to customers by the energy companies in the form of higher gas and electricity bills.

Currently there is no scrutiny of the costs accrued and how these are passed on to consumers, which means that £11bn figure could grow.

Why are smart meters being rolled out?

Under EU legislation, 80% of consumers will need to have smart meters installed by 2020 as part of a larger plan to help European nations meet energy-efficiency targets. It's hoped that smart meters – when used alongside the handheld energy monitor you'll also receive – will help people become more aware of how much energy they're using and take steps to reduce consumption.

Read the section on 'What is a smart meter?' to find out more about the potential benefits to you.

The nationwide installation of smart meters is a key part of the shift from standard, passive electricity grids to 'smart grids'. Smart grids use digital technology to better manage electricity demand and production, and will be able to communicate directly with 'smart' homes or appliances, and offer more flexible tariffs. It should also make it easier to sell any excess electricity you generate via microgeneration technology, such as a solar PV panel, back to the grid.

How will my smart meter be installed?

Once the smart meter roll-out begins, your energy company will get in touch to arrange a suitable time and date for your smart meter to be installed. The installation itself will be carried out by a trained installer from the energy company. British Gas estimates that a typical smart meter installation takes around 1.5 hours – but it will differ from property to property, and depend on where your current meters are located.

As part of the installation, your energy company may offer to carry out an energy-efficiency inspection of your home, but you're not obliged to take up any of its recommendations, or buy any additional products.

How big is a smart meter?

You'll get two smart meters – one for gas and one for electricity. The smart gas meters are about the same size as current gas meters, while you may find that your electricity smart meter is slightly bigger than the old-style meter you have now. 

Your gas smart meter will be battery-powered and the electricity smart meter will be plugged into the mains.

How do smart meters work?

Smart meters measure and record your exact gas and electricity use, and send all the information back to your energy supplier – either directly or via an independent third party. This means no more estimated bills, and no more need for a meter reader to come to your home to take a gas and electricity reading.

Will a smart meter show me how much energy I'm using?

A smart meter itself doesn't tell you much about your energy usage. But when you're upgraded to a smart meter you'll also receive a handheld in-home display unit, which will let you see how much gas and electricity you're using in real time, as well as how much it costs.

For now, you can buy separate energy monitors that monitor your electricity use (most can't measure your gas use). Our Best Buy energy monitors start from around £35. Our video explains the differences between a smart meter and an energy monitor.

Smart meter

Smart meters record and send information about energy usage to your energy company 

What information does a smart meter collect about my energy usage?

Smart meters collect and record information about the electricity and gas you use in your home. Read our separate advice on smart meters and your data to find out more about how (and how regularly) your personal data will be collected, stored and used.

Are smart meters safe?

So far, there has been no medical evidence to suggest that smart meters are unsafe for people.

How often will my smart meter need to be replaced?

Smart meters will need to be replaced around every 10 years – which is more often than current gas and electricity meters. Again, your energy company will let you know when your smart meter is due to be replaced, and arrange a time and date for this to happen.

Will having a smart meter affect me switching energy suppliers in future?

Long term, it's hoped that smart meters will make it quicker to switch energy suppliers – in theory, a smart meter can be instructed to send information about your energy usage to a new energy company instantaneously.

If you were to get a smart meter installed ahead of the national roll-out in 2014 and later wanted to switch gas and electricity providers, the meter can be switched to 'dumb' mode, where the smart meter would perform the role of a passive gas or electricity meter. However, if you're a prepayment energy customer you would need to have a new meter installed.

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