What is a smart meter?

Smart meters record how much electricity you use and when, then sends this information to your electricity distributor. While smart meters are widely used in Victoria, many states still rely on three-monthly actual or estimated readings (where your energy usage is calculated based on previous usage patterns). In fact, only 30% of all homes outside of Victoria currently have a smart meter.¹

However, it works differently depending on your state or the type of meter you have.

According to the Victorian State Government, smart meters work through a four-step process:²

1. In 30-minute intervals, your smart meter measures all electricity use in your home.
2. Your smart meter sends this information to your energy provider or distributor, providing them with up-to-the-minute snapshots of your electricity usage.
3. Your energy provider also gives you access to this data via in-home displays (if available), mobile phone apps or web portals linked to your smart meters.
4. This information allows you to understand your energy usage patterns better, helps you work out ways you can reduce electricity usage and, consequently, save on your power bill.

However, type 4 meters operate slightly different and are more common in New South Wales and Queensland. While they still record half-hourly information about your energy usage, the fastest they currently send data to distributors is every 24 hours. Once this information is available, your provider will share it with you.

Your eligibility for a smart meter will depend on a series of factors, including if:

• Smart meters have been rolled out across your area
• You’re moving into a new build home
• Smart meters are required for your new electricity plan
• You’re installing a solar PV system
• An old meter needs to be replaced with a new meter if it’s damaged or at the end of its life.

Contact your energy provider to see whether you’re eligible to get a smart meter and what the next steps are. Your electricity provider will provide you with a smart meter if your current meter needs replacing or if you move to a plan that requires a smart meter.

The cost for smart meters varies between electricity providers. Some may waive upfront costs or smart meter installation fees but include other fees as part of your bill. Others may set their own servicing and maintenance fees. Always discuss these costs with your provider and compare your options.

Smart meters give you more options for saving money; primarily, through electricity tariffs. If you’re on a time of use tariff, you could potentially save money by using your energy-heavy appliances during off-peak times and minimising your electricity usage during peak periods.

Adjusting your behaviour using data from your smart meter is one way to save – provided you have the corresponding tariff to support it.

With smart meters, you may have access to time-of-use tariffs as your provider will have the ability to monitor your usage throughout the day and charge accordingly.

If you’re eligible for a time-of-use tariff, you can take advantage of this by:

• Avoiding heavy usage in peak periods (e.g. Monday to Friday evenings) by not turning on heavy power appliances like clothes dryers, washing machines and dishwashers.
• Utilising lower off-peak prices (e.g. overnight on Saturday and Sunday) by using energy-heavy appliances at these times.
• Using shoulder periods whenever possible, measured between peak and off-peak periods, costs slightly less than peak, but higher than off-peak charges.

The core function of some smart meters is to transmit your household’s energy usage levels to your electricity provider. Of course, some smart readers may still require a manual read, so check your smart meter’s capability with your provider.

It might surprise you to learn that your smart meter can also act as a simple communications device if you have an in-home display, registered for SMS alerts or have an online account or app to view your energy information. Energy providers can send public warnings about major power outages in your area and the estimated restoration time.

Thanks to your smart meter’s continuous two-way dialogue between your household and your energy provider, it can also help your distributor quickly identify any faults in the service or on the smart grid. This minimises downtime and helps streamline the reconnection process in the event of a blackout, ensuring your provider can get your power up and running again as quickly as possible.

Smart meters can remotely perform some key tasks on behalf of your energy provider, such as connecting and disconnecting your energy when moving. This makes moving to a new home quicker, easier and cheaper, as your meter is read daily.

Smart meters can also slash disconnection and reconnection fees, as companies don’t physically need to come to a property to turn power on or off. However, this can only occur if it’s safe, otherwise a meter reader will still need to physically attend the property. Distributors can still set their own fees for this service, which can vary between states.

You can monitor your energy usage in real-time with web portals, smart meter apps and in-home displays, which gives you more control over your usage. For example, they can help you figure out the best and worst times to use appliances with high-energy usage. You can also set up your system to receive warning messages for excessive energy usage.

What’s more, if you have solar power, you can use your smart meter to monitor how much of it you’re using and change your usage patterns to take advantage of your solar panels’ electricity generation.

With smart meters, you can time when your appliances will start or turn them on remotely to manage energy usage if you have smart devices and a Wi-Fi connection.

While smart meters can track your electricity usage, they’re not something you can read manually. Instead, the meter service provider will receive information about your electricity consumption and then make this information available to you.³

You’ll usually be able to access this information online by logging into an account with your electricity provider. You typically have the option of viewing your hourly, daily, weekly and yearly usage, including any solar energy you’re generating if you have solar panels.

Smart meters look similar to the older electricity meters you’re probably used to. While they’re similar in size, you’ll notice that most smart meters don’t have a dial and have a digital display. Of course, the exact appearance can vary between models and providers.