Facts for You

A blog about health, economics & politics

I have a new addition to my kitchen, in the form of a little black box. It has an endearing habit of lighting up from time to time, welcoming me to my very own smart meter. At other times, it obligingly reminds me that it is “waiting for current data”. I wait eagerly, reassured by a nice lady at my energy provider that it may take up to twenty-eight days of uninterrupted power supply to the black box, during which time they will try to fix the problem remotely, before I can reap the benefits of my new companion. We cannot but help live in hope.

We are in the throes of a “green industrial revolution”, some details of which have recently been announced by Prime Minister Boris Johnson . And we have been greening for a while, with domestic smart meters playing a small part in the continued drive towards energy- efficient households. The potential benefits of “smart” domestic energy consumption led the Theresa May government, via the Queen’s Speech on 21 June 2017, to promise that every household in Great Britain would be fitted with a free smart meter by 2020-a pledge which was soon to be abandoned. But the pledge was not forgotten altogether. Most recently, an advertising campaign promoting newer second-generation smart meters has been initiated by Smart Energy GB, a UK government-backed, and energy-supplier-funded, London-based media organisation, with full-page newspaper and magazine ads, attempting to persuade eligible, and as yet undecided, consumers to go ahead and install smart meters.

So, what exactly is a smart meter? Smart meters are digital devices that are directly wired into the National Grid to measure domestic electricity consumption. Gas consumption is first read by a battery-powered meter that then sends the reading to the electricity meter at half-hourly intervals. Energy consumption is measured in kilowatt-hours and priced in pounds and pence. The near-real-time meter readings are then sent directly to the energy provider over a separate secure smart data network. This network is accessible to all providers, explaining how you can switch providers without changing meters, and is managed by the DCC (Data Communications Company), which does not require Wi-Fi. Consumers are not charged for having a smart meter fitted, the costs being actually “spread across everyone’s bills”, in the words of Smart Energy GB.

On sifting through recent online comments from dissatisfied consumers, three key themes prevail. Many users have felt pressurised by their energy providers into having a smart meter installed, with threats of being denied cheaper tariffs, even though the decision is meant to be a voluntary and informed choice. Other users feel that they are being surreptitiously overcharged by their new smart meters, by a pricing mechanism that is far from transparent. But the biggest single quibble seems to be that the in-house smart meter displays either do not work at all or are dysfunctional and erratic at best, which defeats the whole purpose of helping the consumer make better use of the energy they are provided with. This is not to mention any conspiracy theories based on unsubstantiated health effects of smart meters and on concerns, some legitimate, over undue surveillance and the risks of hacking and cybercrime.

There are several possible reasons why utility companies are keen to install smart meters. It is, of course, administratively convenient and efficient to obtain reliable and direct wireless readings of energy consumption, thereby ending a reliance on possibly inaccurate estimated bills. But there may also be government targets to be met, and maybe even hidden financial incentives behind each new installation. The main reason for promoting smart meters to the general public is so that electricity and gas consumption can be measured in real time, allowing a better understanding of, and a more efficient use of, domestic energy consumption. However, it is important to remember that smart meters do not reduce energy bills by themselves-it needs changes in consumer behaviour, guided by a clear understanding of smart meter displays, to do that.

While there are many good reasons to support the use of smart meters, it seems that the devices are being rolled out with undue haste, despite a host of acknowledged teething problems. And in an age when new technology is soon overtaken by even newer innovations, smart meters may well become obsolete by the time each and every household in Britain becomes the proud possessor of one of these devices. Only time can tell.

Ashis Banerjee