How do Smart Meters Work and do I Need One?

At Nottingham Energy Partnership, we often receive questions about smart meters, so this article will cover everything you need to know to understand them.

Smart meters and energy monitors

Many households have received a stand-alone energy monitor (also known as an in-home display) from their supplier without actually having a smart meter installed. This device shows your live energy use, so you will see the impact of turning a light or an appliance on or off. You will be able to see which appliances use the most energy and, where possible, aim to reduce using the appliances which consume the most energy.

An energy monitor can be added to your existing meter or you can have your existing meter replaced with a smart meter, as well as receiving an energy monitor.

Understanding smart meters

Smart Meters come in 2 parts: the smart meter which replaces your original meter and in-home display, also knowns as an ‘Energy Monitor’. Smart meters record your accurate energy usage (rather than an estimate), which is then communicated to you in real time on your in-home display in either kWh or in £, depending on your preference.

Do I need a smart meter?

You do not have to have a smart meter but there are several benefits that come with getting a smart meter, which include making your life easier, saving money and having a positive impact on the environment and the UK’s energy supply.

Easier for you:

  • By having a smart meter, you don’t need to take your own meter reading or have someone come and take your meter reading for you. This saves you time and takes another thing off your to-do list.

  • If on a smart pre-payment meter, you can keep an eye on how much credit you have left and top up remotely instead of having to go to the pay point.

  • If required, your supplier might have more accessible in-home displays, to ensure that you are able to see and understand your energy usage.

Save you money:

  • By having a smart meter installed, you will only be charged for what you use, rather than your energy company charging you for an estimate of your use.

  • The in-home display allows you to track your energy usage, and more specifically, the energy usage of your appliances. By turning appliances off and on systematically, you will be able to see which appliances are using the most energy.

  • Through the in-home display you can see your energy usage for the past week/month, allowing you to make smarter decisions around your home and reduce your energy usage.

  • By having a smart meter, it allows you access to new “time of use tariff,” whereby energy is cheaper outside of peak usage times (like overnight). For example, by using your washing machine overnight you’ll be on a reduced electricity rate, saving you money.

Better for the environment:

  • By having a smart meter, it helps record the accurate energy usage in your property which helps the grid predict energy use and ensures that the system does not get overloaded. This helps prevent power cuts.

  • By using the in-home display, you can see your household energy usage. Through small behaviour changes within your home, you will be able to reduce your energy consumption and carbon footprint.

Overall, smart meters are ideal for predicting your energy bills and making you aware of your energy use, giving you greater control. It allows you to assess your energy usage, make positive changes to your habits and work out ways to save money.

However, you don’t need to have one if you don’t want one. Whether you are interested in one or have a problem with yours – please contact your energy supplier.

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