Smart Metering - Consumer Benefits

Smart metering is been sold as a customer boon. Lets look at exactly how smart metering is going to change the way we use our appliances.

With de-regulation of the energy market, utilities have introduced many customer friendly programs over the years for e.g. Airmiles, loyalty, customer is family etc. They have tried to position themselves as a customer-friendly energy provider to increase their market share. Hence one of the primary factors dictating the success of the smart metering program is how the roll out is perceived by the customers and how quickly can the benefits be transferred to them. Let us outline the customer benefits by implementing the smart metering program:

(1) Customers can monitor their usage values on a real time basis which would allow them to keep a check on their energy consumption and budget for it well
(2) With the actual usage value remotely communicated to the utility, customers would now pay for their exact usage rather than some estimated usage values
(3) Since smart meters record consumption on time intervals enough information will be available for a customer to identify their usage patterns and hence opt for a tariff which best suits their usage pattern e.g. Time-of-use. This means reduced energy bills and at the same time saves energy.
(4) Utilities have struggled understanding their customer based on the nature of their consumption. With real time usage data available, utilities can segment their customers appropriately and provide better customer service.
(5) Moving home? Changing supplier? The suppliers and market participants take around a month for the data exchange and processing to be completed. With around 2 million people moving their home annually that is a lot of time spent. With Smart metering customers can experience a speedy transition as data sharing between suppliers and market participants will be streamlined and quicker
(6) Micro-generation is the production of power and heat by individuals typically to meet their own energy requirements. Micro-generation is usually through renewable resources like Solar energy, Ground heat etc and represents a low carbon footprint. Consumers capable of micro-generation are called prosumers. With a vision of increasing the % of renewable resource energy utilities are increasingly looking at promoting and supporting prosumers. Smart metering provides for measuring the outflow of micro-generated power for which the prosumer will be compensated appropriately. Smart meters provide for inflow-outflow netting and reward the prosumer for the surplus which promotes micro-generation.
(7) Changing tariff to suit your schedule? Want to switch payment method i.e. credit to/ from prepayment? The Meter at the customers premise has to be replaced for a tariff or a payment mode switch. Smart metering allows remote switching of tariff and payment mode without having to schedule a field representative visit to the customers address.