Do smart meters really save you money and do you need…

Do smart meters really save you money and do you need one?

With chancellor Jeremy Hunt confirming that the Energy Price Guarantee will rise from £2,500 to £3,000 for a typical household from April, most of us are once again looking at ways to slash our bills.

And it's important to bear in mind that £3,000 is not a cap on your energy bill, it is instead unit rates and standing charges that are capped. £3,000 is illustrative of a household with typical energy use.

One thing you could consider is getting a smart meter to have a better idea of how much energy you're using - and crucially, how much it is costing you. These little devices record real-time information about households' gas and electricity use and then report back to energy providers.

If you don't already have a smart meter and are unsure of taking the leap, here are all the pros and cons to help you stay informed on these devices, as first reported in the Mirror.

Do smart meters really save money?

If your smart meter is working correctly, then it can save you money. But how much you save will depend on how you use them.

For those with smart meters, you shouldn't need to manually provide meter readings to your energy provider. In theory, this means more accurate billing as your bills aren't estimated.

Smart meters usually come with an in-home display (IHD), which shows you how much energy you're using in real time and how much you're paying for that. This should give you a better idea of how much energy you're using and where you could cut back if necessary.

If you have a prepayment meter, a smart meter could help you stay on top of your credit.

What are the disadvantages of a smart meter?

If you have a first generation smart meter and you switch suppliers, it may not be possible for your new provider to read your data automatically, meaning that you'll have to manually take meter readings until this changes. Energy companies are currently installing second generation devices, with all first generation ones eventually added to the national network in order to communicate with all suppliers.

Those who live in a rural area without a strong internet connection may find that their smart meter struggles to connect to their supplier.

Energy companies are under pressure to take "all reasonable steps" to have smart meters installed in all households by 2025. However, it's completely your decision and you aren't required to have a smart meter in your home.

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