What are smart meters?
A smart meter is a digital device used to measure energy consumption in real-time. They use a combination of sensors and communication networks to measure and transmit energy usage data.
Measure
Much like traditional analogue meters – smart meters measure and record the amount of electrical energy used by your home or business. This keeps a record of how much energy is being used in real-time.
Communicate
Using two-way communication technology, smart meters interact with both you as the consumer and the energy supplier. They communicate through radio waves, cellular networks or wireless mesh networks.
Access
The information from your smart meter can be accessed via an in-home display or smartphone app. On the supplier side, the meter automatically transmits the data to allow billing and other services.
Secure
The wireless links between digital meters and the retailer are encrypted and don’t use the internet, making them very secure. No customer data is attached to the transmission of metering data.
Lets compare to a traditional analogue meter:
| Smart Meter | Analogue Meter |
|---|---|
| ✔ Real-Time Monitoring | ✖ Manual Readings |
| ✔ Automatic Readings | ✖ No real time monitoring |
| ✔ Two-way communication | ✖ No communication |
| ✔ Timely Billing | ✖ Estimated Billing |
Not sure if you have a smart meter?
If your meter is from 2018 or installed more recently, it should be a smart meter. Smart meters have a digital display that shows kWh usage but other functions that you can’t see like the ability to read the data remotely. Older meters might either be analogue with spinning discs and rotating number dials, or you may have an older generation digital type that displays energy usage but doesn’t have advanced functionality. To find out more about the different types of meters and what they may look like visit 'Types of Meters' page. But if you’re unsure, you can always check with your retailer.
Roll-out of smart meters
To deliver the benefits that smart meters offer to the wider community, the Australian Energy Market Commission (AEMC) recommended an accelerated rollout of smart meters to 100 per cent of households by 2030.
Why replace the old technology?
Analogue meters are an old technology that were implemented long before the advancements of the electricity network today. Like the evolution of most tech, we need tools like smart meters to keep up with technologies such as solar and electric vehicles that are a part of the increasingly digital world we live in.
Advantages of a wide roll-out of smart meters
A wide roll-out of smart meters across NSW offers significant benefits to the community as a whole:
Ausgrid Smart meter data project
The smart meter data project involved market engagement, system development and analytical software to better understand the benefits of smart meter data in a range of scenarios. The scenarios involved measuring power quality to provide greater network visibility, allowing improved modelling of network performance as well as identification of defects associated with a customers’ connection.
The project successfully identified a number of serious safety hazards and emerging defects in the network at approximately a dozen properties. This project has provided evidence that smart meters reduce the risk of electric shocks for customers. It has also improved Ausgrid’s understanding of network hosting capacity in local areas enabling us to facilitate lower cost integration of customers’ solar systems.
Managing and responding
Utility companies, like Ausgrid, can continuously monitor energy usage across the entire network. This data helps us to understand consumption patterns, identify peak demand periods and respond more effectively to outages.
Foundation for the future
Smart meters are part of the foundation for building a smart grid – a smarter energy system that responds to the changing demands of consumers. This could include support for consumers through dynamic pricing models and the ability to more easily access future technologies.
Improved safety
The information that smart meters transmit can help to detect unusual patterns that could indicate a fault in the meter and alert both the consumer and utility company to take action before the issue becomes dangerous.
How do smart meters benefit you?
Control over your own usage data
Access your current energy consumption, track usage more effectively with detailed data to reduce waste and costs and make informed choices by understanding your energy habits.
Cheaper and faster services
Smart meters should also enable cheaper and faster services:
- Meter reading is done remotely, instead of via a person visiting your house
- Meters can be disconnected and reconnected remotely, instead of having to make an appointment
Sets you up for future tech
Smart meters enable greater efficiency and control for future tech, allow easy management of EV charging during off-peak rates, optimise home energy storage systems, and help you track solar panel production to maximise renewable energy benefits
What are some disadvantages that I should know about?
For some people increased usage awareness could lead to stress from constantly monitoring energy consumption, and time of use pricing could result in higher bills for those unable to avoid usage in peak periods.
How can you use your smart meter effectively?
Smart meters offer you a number of advantages, here’s how to best make use of them:
Tracking your usage to understand your habits
Many electricity retailers have online platforms and apps that show your usage in graphs and charts. The benefit of this is being able to monitor your energy consumption and identify patterns of when you’re using the most electricity and where potential savings can be made. From there you can adjust your usage habits and get real time feedback, rather than waiting for the next bill to come in the mail. You can also get an up-to-date estimate of how much your usage costs are, so you have a better idea of what to expect and how to budget for your next bill.
Installation
Who’s responsible for installation?
Contact your electricity retailer if you want a smart meter. They will confirm whether they offer smart meter upgrades and how that may impact your contract and billing. Before getting a new smart meter, your electricity retailer will:
- Tell you who will install the smart meter
- Confirm the installation date or reschedule your installation if no one is available
- Explain any possible changes to your energy contract
Retailers will install your meter for free, but you may need to shop around if your retailer does not offer smart meter upgrades ahead of the Australian Energy Market Commission (AEMC) roll out.
What to expect with installation
Before your smart meter is installed your retailer must give you at least four business days’ notice. When it comes time to have the smart meter installed you will generally need to:
- Make sure there’s clear access to your residence - you may need to unlock your gate or contact your building manager to ensure access
- Your electricity will need to be turned off for up to two hours. This may be longer if unexpected issues occur.
Your retailer can give you specific advice on what to expect on the day.
Once the smart meter is installed and tested, the installer must:
- Give you a Certificate of Compliance for Electrical Work (CCeW)
- Submit this certificate to NSW Fair Trading, to confirm the work has been done by a registered electrical contractor.
Contact your retailer if you experience any issues or power outages or require any maintenance immediately after your meter has been installed.
Tariff changes
After installation of your smart meter – your retailer may automatically change your tariff. This could be a time-of-use tariff or a demand tariff. However, it’s important to note that your retailer must give you at least 30 business days’ notice when transitioning you to a new pricing structure.
Ausgrid’s default tariff for a new meter is the demand tariff, however you can opt for a time-of-use tariff if you prefer. To do so, you will need to speak to you retailer. While Ausgrid is responsible for setting tariffs, how they are passed on to you is at the discretion of your retailer. Ausgrid passes the tariff to your retailer, who passes it on to you.
Your rights
You do not have to go onto a time-of-use contract just because you have a smart meter. However, individual retailers may only offer time-of-use contracts, so you may need to change retailers to retain a flat rate.
As part of the installation process, chat to your retailer and they can explain how your bill may change after installation.