Should you get a smart meter?

The government is pushing for us all to get a smart energy meter. Seven million have been fitted so far, but the Conservatives want that figure to reach 26 million by 2020. However, having a smart meter isn't compulsory despite the pushy letters you may have received from your energy provider. So what do they do, and should you get one?

A smart energy meter automatically takes your meter reading several times a day and sends it to your energy provider. The meters can replace both electricity and gas meters and provide you with far more accurate bills. If you don't have a smart meter, your energy firm relies on you to provide meter readings, or pays meter readers to trawl the streets knocking on doors to get readings. Fail to provide regular readings and your bills will be based on estimates, which could mean you are overcharged for your energy use.

The other reason to get a smart meter is that you can get a display unit for your home that shows you how much energy you are using and more importantly, what it's costing you. The idea is that you'll see just how much you are spending at any given time, and rush around the house switching things off, shaving money off your bills and cutting down on energy consumption.

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The question of how much you could save is another matter one government report reckons smart meters will save the average household £43 a year by 2030, whereas another puts the saving at just £11 a year. The average installation cost for a smart meter is £67, with most households requiring one for electricity and one for gas. You don't have to pay for the installation, but the costs are likely to be added to your bills.

Another cost will be for replacing smart meters they only have a 15-year lifespan, compared with traditional meters, which cost around £15 and last for about 50 years. Looking at those figures, it might look as though the real winners in the smart-meter revolution are the energy firms themselves. "The smart-meter story is increasingly looking like the emperor's new clothes everyone but the government can see the programme's flaws," Dan Lewis, energy policy adviser at the Institute of Directors, told The Times last year. "Consumer bills are going to pay for the £11bn programme, but the benefits will go to the suppliers and the meter manufacturers."

There are also cybersecurity concerns around smart meters. They are "dangerously insecure", says Netanel Rubin of security firm Vaultra, and open to being hacked, reports the Daily Mirror. Moreover, due to technical issues, around 250,000 smart meters are not currently operating in "smart mode", which means that they are essentially still only providing the service of a traditional energy meter, according to the latest report from the Department for Business, Energy and Industrial Strategy. On a more positive note, while early adopters of the technology found that their smart meters refused to work when they tried to switch energy provider, second-generation smart meters should work with any energy firm.

Overall, the government's goals are laudable to save consumers money while encouraging more efficient energy consumption. Unfortunately, the negative publicity has had an impact, with one in five people saying they don't want a smart meter, notes comparison site Compare the Market, and it remains to be seen whether the problems with the current system can be resolved. As it stands, bear in mind that it is up to you whether you want to have one installed and ensure that if you do, it will actually work in "smart mode", or else you might as well stick with your old meter.

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