Energy monitors: Smart meters and energy monitors explained What is a smart meter?

A First Utility smart meter

Smart meters - like this one from First Utility - will replace your existing gas and electricity meters.

Confusion over smart meters is rife. We’ve found that many people don’t know the difference between a smart meter and an energy monitor, and several people who think they have a smart meter actually have an energy monitor. 

Here we explain exactly what smart meters are and how they differ from energy monitors.

Smart meters – what can they do?

Smart meters are high-tech electricity and gas meters that will replace your existing meter. They will measure your exact gas and electricity use and, most importantly, send all the information back to your energy supplier – meaning no more estimated bills.

The government wants to roll out smart meters to homes across the country at a cost of at least £11 billion but Which? believes the roll-out is flawed. It has the potential to further undermine consumer confidence as well as cost consumers millions more than the initial estimate - so Which? is calling on the government to stop and review the smart meter roll-out. 

How are smart meters different from energy monitors?

Smart meters are much more sophisticated than energy monitors, which simply give you a good estimate of the amount of electricity you are currently using.

Because smart meters can communicate with your energy supplier, they will remove the need for meter readers and for energy companies to guess how much energy you're using between readings. Smart meters will transmit regular meter readings to your supplier automatically, so you’ll get accurate bills based on your actual usage.

Smart meters also offer additional possibilities for the future – such as improved ‘time-of-day tariffs’ offering cheaper rates at off-peak times to smooth out national energy usage through the day. Plus, they will make it easier to sell your own micro-generated electricity (such as from a solar panel or home wind turbine) to the National Grid.

Importantly, smart meters will actually replace your current meter, whereas energy monitors simply clip on to your power cable. See What is an energy monitor? to find out more about what energy monitors can and can’t do.

Smart meters are likely to come with separate handheld display units, which are expected to be similar to energy monitors.

smart meter installation

Smart meters need to be installed by a professional

Will smart meters save me money?

While smart meters will mean more accurate bills, they themselves will not save you money. The government says smart meters will come with visual display units that, like energy monitors, would allow you to view your real-time electricity usage – but the figures will be accurate, and they will also be able to show your gas usage. 

However, you’ll only save money on your energy bills if you actively use the information provided to see where you could reduce your energy consumption, and then make an effort to do so.

While smart meters won’t necessarily mean lower bills for consumers, it’s estimated that they will save energy suppliers more than £300m a year, by removing the need to take meter readings or deal with bill disputes.

Yet the government is planning to allow energy suppliers to pass on the cost of smart meters (at least £11 billion) through higher energy bills.

At the moment, the roll-out is being led by the energy companies with no checks in place to make sure that costs don't spiral. There is no scrutiny of the costs accrued and how these are passed on to consumers, meaning that £11bn figure could grow.

We want to make sure it is as low as possible, which is why we are calling on the government to stop and review the smart meter roll-out. 

How can I get a smart meter?

Unlike energy monitors, which you can buy in the shops and set up yourself, smart meters need to be installed by your energy company. The government hopes to have smart meters in 80% of homes by 2019, and is currently putting forward plans for the roll-out. 

British Gas has already begun installing smart meters and 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. 

Smaller energy supplier First Utility is offering a free smart meter to anyone who switches to its Smart as Standard duel fuel or electricity tariff. It says it aims to install your smart meter within a maximum of 60 days from your supply going live.

If you are thinking of changing tariff or switching energy supplier then sign up to The Big Switch to get the cheapest energy deal - the more people who sign up, the stronger our bargaining power.

Other suppliers will soon be obliged to begin their roll-outs too, once the government has finalised its plans. But before continuing with the roll-out we think the government must answer some key questions including 'How much will consumers pay?', 'How can we minimise the cost?' and 'How do consumers feel about smart meters?'.

Keep an eye on Which? News for updates on the nationwide roll-out, as soon as they become available.

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