With energy bill prices predicted to soar this autumn, many of us are looking for ways to use less and save money.
Many of us are now turning to smart meters in a bid to save cash – but can they really make a difference to our bills and are they safe to use?
Here’s what we found out….
What is a smart meter?
A smart meter is just a more modern version of your old meter; the way your gas and energy bills are calculated per unit is still the same as before.
The advantage is that smart meters automatically transmit data about your energy consumption to the energy provider.
Smart meters are becoming increasingly popular, making up 31% of all energy meters in the UK last year, according to government figures.
Does it mean no more meter readings?
Yes. Having a smart meter “means no more scrabbling around in a cupboard with a torch as you try to see the numbers”, said Compare The Market, as these handy pieces of technology work out your energy usage and relay that information to your supplier automatically.
Having a smart meter means your energy supplier won’t need to pay someone to come out and read your meter.
Will it save me money?
The simple answer is yes – not just from watching the display screen but, as a result, knowing more about the way devices are used around your house.
Those with a meter can monitor exactly what is being used by a particular appliance, from putting the kettle on to make a cup of tea to running a washing machine cycle.
Having this information helps consumers understand which of their appliances is an energy guzzler and which ones are the most energy efficient. “Even well-informed people and frugal savers may be clueless about what appliances are causing the most damage to their energy bills,” said Loop, the app that monitors energy usage.
Once you learn which appliances are costing you the most, “you’re likely to be able to prioritise your energy use and cut back on the biggest power-drainers” so you shouldn’t get any nasty surprises at billing time.
Some smart meters also allow you to set daily targets for energy use. They don’t cut you off if you go over this set limit, but they will show that your target has been reached.
What data does a smart meter share? Could hackers access my information?
Privacy campaigners have raised concerns that smart meter information relating to customers’ energy usage could be passed on to third parties without customers’ permission. Although there are laws prohibiting energy companies from sharing this information without express permission, the laws determining how tech companies can use data are more complex.
“Some people have expressed concerns that the meters could be hacked,” said Household Money Saving, which “could allow potential burglars to know when people are in or out due to their energy consumption”.
But it is worth noting that, so far, there have been no known hacking instances involving smart meter data, said This Is Money.
What happens if I switch suppliers? Will there be issues?
There are currently two types of smart meters on the market: SMETS1 and SMETS2. If you have a first-generation SMETS1 smart meter installed, it could lose its functionality when you switch suppliers, meaning you have to go back to manually reading your meter as this will no longer be done automatically.
But, explained the consumers’ rights publication Which?, “second-generation smart meters should not lose their smart functions when you switch because they’re connected to the central wireless network which all energy suppliers should be able to use”.
