The Spring Budget announced by the UK Labour government on 26 March detailed that household bills – including water, electricity, and council tax – would all be on the rise. A typical annual energy bill is expected to rise by an average of £111 to £1,849. It is imperative, now more than ever, for households to utilise smart metering technology in order to understand just how much energy they are using, and where they can cut back.
The energy price cap has been increased by 6.4%, meaning that energy suppliers are able to charge more for the energy they provide. On average, this will translate to a £111 rise for dual fuel households. This adjustment reflects volatility in global energy markets, which have driven up wholesale energy prices.
Because smart meters can offer more detailed insights into, for example, the times at which the end user is consuming the most energy, customers with smart meters are only charged for the energy they use, as opposed to conventional meters which provide an estimation of usage. In essence, the more accurate the smart meter, the more accurate the bill.
Customers with smart meters can check to see when energy usage spikes, to be given a clearer picture of what times of the day they consume the most; set daily, weekly, or monthly energy reduction targets; and adjust usage to off-peak hours (if this is offered by a supplier) when electricity is cheaper. Other simple steps like switching off energy-hungry appliances when not in use, turning off lights and lowering heating can all have a small contribution to cutting back.
Customers can also check when their contracts are due to expire and haggle with energy suppliers about renewal. Shopping around for a better deal can result in reduced prices. According to advice provided by consumer group Which? as reported to the BBC, Emily Seymour said switching providers can cut broadband, TV and mobile bills “by up to £235”.
The UK government initiative to roll out smart meters, which began in 2022 and is expected to end in 2025, shows how policy makers are harnessing smart metering technology as a means of not only reducing household bills, but cutting back on emissions to meet Net Zero aims. Existing targets – aiming for 75% of households to have a smart meter installed by 2025 – means customers, if they don’t already have a smart meter, can hope for one soon.
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