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What are smart metres and can they save you money?

Smart metres are an innovative electronic device that records the consumption of electric energy, voltage levels, current and power factors and communicates the information to the consumer and the electricity provider. They have been integrated into homes throughout Australia since the 2000s with various states adopting them at different times. The exact timing of their introduction varies depending on government policies, utility companies, and technological advancements. Additionally, by order of the Australian Energy Regulator (AER), all new and replacement metres in these states and territories must be smart devices, so if you're building a new house or replacing a faulty metre at an existing property, a retailer has to provide you with a smart metre. If you live in Victoria, your home should already have a smart metre, as they have been compulsory for Victorian residences since 2006

Key Features of Smart Energy Metres

Smart electricity metres play a vital role in the advancement of smart grid technology, which aims to modernise the energy sector infrastructure. Unlike traditional metres, which require manual reading by a person, smart metres automatically collect usage information and transmit it wirelessly using advanced digital communication and control capabilities.

They offer benefits for utility companies and consumers, including increased efficiency, reduced operational costs, and greater control over energy consumption. Features include:

  • Real-time Data Monitoring: Smart metres provide accurate and up-to-date information on energy or water usage, allowing consumers to understand their consumption patterns.
  • Remote Reading: Utility companies can remotely access data from smart metres, eliminating the need for manual metre readings. This reduces operational costs and improves efficiency.
  • Two-way Communication: Smart metres can receive commands and updates from utility companies, enabling functionalities like remote metre readings, service connection/disconnection, and time-of-use pricing.
  • Improved Billing Accuracy: Since smart metres provide precise consumption data, billing is more accurate, eliminating estimation errors that can occur with traditional metres.
  • Energy Management Tools: Many smart metres come with accompanying software or apps that enable consumers to track their usage, set energy-saving goals, and receive insights on how to reduce consumption.
  • Support for Dynamic Pricing: Smart metres facilitate dynamic pricing models where the cost of energy varies based on demand and supply conditions. This encourages consumers to shift their usage to off-peak hours, thereby reducing strain on the grid.
  • Real-time Consumption Data: Smart metres provide accurate and up-to-date information on energy usage, giving consumers a better understanding of when and how they use electricity. By monitoring their consumption patterns, consumers can identify areas where they can reduce usage and potentially save money.
  • Time-of-Use Pricing: Some utility companies offer time-of-use (YOU) pricing plans, where the cost of electricity varies based on the time of day. Smart metres enable TOU pricing by accurately tracking consumption during different periods, such as peak and off-peak hours. Consumers who can shift their electricity usage to off-peak hours may benefit from lower rates, leading to cost savings.
  • Remote Disconnect/Reconnect: Smart metres allow utility companies to remotely connect or disconnect service, eliminating the need for manual intervention. This can help prevent unnecessary charges due to delayed disconnections or reconnections, reducing costs for consumers.

Do Smart Metres Help You Save Money?

Smart metres potentially help consumers save money on electricity costs, however, the extent of savings depends on various factors, including individual consumption patterns, utility pricing structures, and how consumers utilise the information provided by smart metres.  One major advantage of having a smart metre is your retailer can offer you a flexible or time-of-use plan, and won't have to estimate your usage. This enables the retailer to only charge you for the exact amount you use, meaning you may get better value for money from your utilities. It also means your electricity distributor can monitor the quality of your supply more closely and detect outages promptly. 

be smart lightbulb pic

How Can You Save Money With A Smart Energy Metre?

Pricing plans are designed to reflect the costs of managing the electricity network, with electricity prices higher in periods of heavy demand, and lower during times when there's typically less strain on the grid. Flexible pricing won't suit everyone and will be most beneficial for households that can hold off using some of their energy until the cheaper off-peak periods for example, setting the dishwasher to run at 10 pm instead of straight after dinner.  The typical flexible pricing plan involves peak, off-peak and shoulder periods, the pricing can vary depending on your energy provider and the state you live in Peak prices are higher than a flat rate where the price is always the same,  while the off-peak rate should be lower. The shoulder price should be lower than a flat rate.

An example of the periods in a flexible plan in NSW:

Shoulder - 7 am–2 pm and  8 pm–10 pm weekdays; 7 am–10 pm weekends.

Peak - 2 pm–8 pm weekdays (no peak on weekends).

Off-peak - 10 pm–7 am every day.

To help you identify where your energy consumption is being used a few appliances are energy guzzlers and don't need to be used on demand or throughout the day. By scheduling them to operate during off-peak hours you can significantly reduce your energy costs.

  • Washing machines
  • Clothes dryers
  • Dishwashers
  • Water heaters
  • Pool pumps.

Using a Smart Metre to Find a Cheaper Electricity Deal

In Victoria, smart metre data can be uploaded to the government's Victorian Energy Compare service, which will combine it with information about your household and current electricity market offers to suggest an optimal electricity plan. In addition, any Victorian household can get a $250 Power Saving Bonus just by comparing their current energy plan with others on the market. For other states and territories (excluding the NT and WA), the federal government's Energy Made Easy comparison site will similarly analyse your smart metre data and show what you'd be paying on different plans.

If you would like to know more about smart metres contact 1st Call Electrical Services on 1300 360 215 and one of our helpful electricians will assist you.

Reference https://www.choice.com.au/home-improvement/energy-saving/power-meters/articles/smart-meters-how-do-they-work?