What is Smart Metering?

Smart metering is designed to provide utility customers information on a real time basis about their domestic energy consumption. This information includes data on how much gas and electricity they are consuming, how much it is costing them and what impact their consumption is having on greenhouse gas emissions.

The majority of existing electricity and gas meters are hidden from view and provide little or no information for the customer on energy usage. Meter manufacturers and others have developed smarter metering that offer greater awareness and influence over energy use than currently exists in Europe.   These metering systems have been rolled out with considerable success across a number of international marketplaces such as the US and Italy and more recently Australia, Finland and Sweden.

There is no single definition of smart metering, however all smart-meter systems comprise an electronic box and a communications link. At its most basic, a smart meter measures electronically how much energy is used, and can communicate this information to another device which, in turn, allows the customer to view how much energy they are using and how much it is costing them.
 
The key distinction between smart-meter types is determined by their communication i.e. whether there is any with the energy supplier, whether this is one-way or two-way and the data-storage capability of the meter.  The combination of these features determines the extent to which the metering system can help customers reduce their energy usage and minimise carbon emissions.
 
Information that smart meters can display includes:

Electricity and Gas consumption and cost

• Greenhouse Gas emissions
• Historical consumption data for comparison
• Current tariff and demand via colour LED indicators

Smart metering is also a key element of the Smart Grid, providing a two way link between the grid operators at one end and customers and suitably equipped home appliances at the other.  For instance, it is possible for grid operators to remotely adjust thermostats in customers' homes to reduce load on the system.  In turn the utility would have to offer their customers an acceptable tariff to accept this arrangement.  This also links smart metering into home automation technology.