Smart meters: What are they and how much can you save?

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Smart meters (also known as digital or advanced meters) have been touted as one of the greatest energy developments of modern time. All homes and businesses in Victoria are already fitted with smart meters, and now the technology is becoming mainstream in other major jurisdictions following changes to the National Electricity Rules.

So, what are smart meters and why the move toward them? In this article, we discuss the pros and cons of smart meters and if installing a smart meter can help save you money.

What is a smart meter?

A smart meter is an advanced type of electricity meter that uses digital technology to record your energy usage. Smart meters record electricity used in kilowatt hours (kWh) every five to 30 minutes, with the info then sent to your energy retailer for billing.

Smart meters look very similar to traditional energy meters. The only difference is that smart meters come with a digital display screen, rather than a dial. Unlike traditional meters, smart meters don’t require someone to physically attend your property to take a meter reading. This means you won’t receive an estimated bill from your power company.

What are the benefits of a smart meter?

It is easy at first to be skeptical about smart meters, but it’s not just the energy companies that can benefit from the technology. Here are just some of the things households and businesses can benefit from with smart meters:

• Access to live usage information: Smart meters record energy usage information every 30 minutes, which means that customers essentially have live usage data on their energy habits. Some retailers and energy networks even have a mobile app or web portal for customers to check this data on too. This data then, can help customers to identify where they may be wasting electricity and how they can cut down to save on their bill.
• Quicker response to connection issues: With live usage information available, smart meters can also notify electricity distributors of any connection or service issues more efficiently.
• Access to flexible rate tariffs: Smart meter users can sign up for flexible energy pricing, which is practically the same as a normal time of use tariff. The only difference is that the older time-of-use meters take multiple readings, while a flexible price meter will simply make a single continual usage reading, but simultaneously record the time of usage. Flexible pricing tariffs charge three rates depending on the time of day: Peak, off-peak and shoulder.
• Faster energy provider switching times: As providers can disconnect and reconnect your energy remotely with a smart meter, this can make the process of moving to a different provider much faster.

Can a smart meter save me money?

If you’re prepared to adjust your energy usage habits, installing a smart meter can be a useful tool for cutting your power bill. As a smart meter records your energy usage every 30 minutes, you’ll be able to see when and where you’re typically using more electricity. This can help you to narrow down the activities and appliances that could be driving up your bill.

The inclusion of live usage information, as well as the option to more to a flexible time tariff, can help savvy customers tailor their usage and energy plan to keep costs low.

While a smart meter doesn’t automatically lower your bill, it may be able to make suggestions on where you could cut costs, thanks to the live-usage information and flexible time tariffs. Switching to a flexible plan with time-of-use options can allow you to prioritise your heavier energy use for off-peak hours, where demand on the grid is lower and rates are cheaper. These tariffs can be especially helpful for homes with energy-draining appliances, such as hot water heaters, pool pumps, dishwashers, washing machines and dryers.

Are smart meters safe to use?

There are some concerns with smart meters surrounding health and safety, in regard to the levels of radio frequency electromagnetic energy (RF EME) output – a form of radiation – used in smart meters. There have been reports, particularly in Victoria, of people experiencing symptoms of electromagnetic hypersensitivity (headaches, tinnitus, insomnia etc) shortly after having a smart meter installed. At this stage, however, there is no clear evidence that suggests smart meters are responsible for these effects.

The Victorian government commissioned studies into the RF EME of smart meters in 2011 and 2015 found that it complies with the minimum standards imposed by the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA). As such, government energy authorities are confident smart meters pose no threat to your health.

Will a smart meter invade my privacy?

As for the question surrounding privacy, smart meters draw usage information every half an hour, giving consumers and power companies unprecedented insight into your electricity usage. Concerns have been raised that energy companies can now draw insights into when you’re home, when you’re sleeping, and possibly even what appliances you’re using based on usage figures. There is also the additional concern of smart meters being hacked to cut electricity or change usage figures.

If you are uncomfortable with your electricity retailer having access to your real-time usage data, you can request a non-communicating meter before installation. However, this may incur additional fees though as your retailer will have to do manual time readings. Retailers are required to give at least four business days’ notice before installing or removing anything which could effect electricity supply to customers.

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How much does a smart meter cost?

Smart meter installation costs may vary depending on your choice of energy provider. Fortunately, as part of the market-led rollout of smart meters, many retailers will front the initial cost on behalf of their customers. However, this cost is then recovered through additional charges in your electricity bill. If your retailer pays for the meter, ensure you ask about ongoing costs and possible exit fees.

For a more detailed look at the charges involved, read our guide to smart meter installation and costs. 

Is it compulsory to install a smart meter in my state?

Under the Power of Choice Reforms in late 2017, customers in most Australian jurisdictions are no longer able to purchase traditional meters. All new meters must be digital or smart meters; however, in most states there is no requirement to upgrade if you already have an old meter installed. Click below for state-specific information.

How do I get a smart meter?

If your existing legacy meter breaks, or you’re moving into or building a new property that will connect to the grid, you’ll most likely be offered a smart meter by the retailer supplying electricity to your home. But current traditional meter users can also request and upgrade to a smart meter, again by contacting their electricity provider.

Your provider can organise a smart meter to be installed at your address. A technician will need to come to your home to remove the old meter and install your new one; you don’t need to be home during installation, but you should ensure there is clear and safe access to your old meter and switchboard ahead of the appointment time.

How to read a smart meter

Much like a regular meter, smart meters can’t be read manually. Despite tracking your electricity usage more frequently, the information from your smart meter still needs to be accessed externally as would happen with traditional meters.

This information can be found online by logging into your account with your electricity provider. Some larger retailers, including Origin, AGL and EnergyAustralia will even provide real-time usage information via an app on your mobile device.

If you don’t want to check your mobile device or energy account for updates, you may also be able to install an in-home display that can connect to your meter and provide real-time usage updates. Customers in VIC can claim a rebate for these displays as part of the Victorian Energy Upgrade scheme.

Energy companies that provide real-time usage information

As we know, smart meters provide close to real-time energy usage information, but some electricity retailers and distributors are utilising this information better than others. If you’re keen to get the most out of your smart meter, the following companies all provide specialised reporting services.

• Powershop
• AGL
• Origin
• Lumo Energy
• Jemena
• AusNet Services
• CitiPower
• United Energy.

Is it worth getting a smart meter?

Smart meters are the likely progression for future grid energy, and it’s likely that eventually other states will follow VIC in making the switch to smart metering mandatory. Depending on how you use electricity, switching to a smart meter can be a useful tool, but you’ll need to ensure you’ve combined your meter with the right tariff type and plan for your home’s needs.

Smart meters have an undeniable potential to help consumers understand and reduce their electricity usage by arming them with more information. The more you know about how your home uses energy, the easier it is to monitor and manage your usage and cut your power bills going forward.

Frequently asked questions about smart meters