The smart meter is just a small box of clever electronics tucked away somewhere in the home – mine's in the cupboard under the stairs. But it's no overstatement to say that this box of tricks can transform the way we think about our energy use at home.
At present, many people only think about their gas and electricity consumption when the bill drops through the door. In a world of smart meters, the most obvious innovation will be that you will have so much more information at your fingertips about your energy use.
As well as the meter, there will be a small display unit somewhere convenient – perhaps on the wall, or the kitchen counter – that tells you how much energy is being consumed in real time. Some displays have a traffic-light system that can indicate whether you've left the oven or the iron on. A green, amber or red light will be on depending on whether your usage is low, medium or high. More than once, the red light alert has had me scurrying around the house to see who's left a power-hungry appliance on. And as an alternative to the display unit, you might get the information via your mobile phone or TV.
The potential for innovation will be enormous in every area. No more waiting in for the meter reader to call. The reading will be taken remotely via regular data communications with your smart meter. Bills will be accurate, not estimated. And you might choose a display that tells you hour by hour, day by day what your energy is costing you, and the carbon emissions.
Just as important as changes in the home will be the innovation behind the scenes in the energy supply industry. If there is more data available on household energy use – down to usage every half hour – utilities could offer targeted energy-efficiency advice and a new array of energy deals and services. These could be tailored to customers' changing energy usage through the day.
This data is at the heart of the smart meter revolution and brings with it the power to transform our energy world. There will be new entrants into the market, and industry will be able to work better and faster behind the scenes. Switching will be smoother, sharpening up competition between energy suppliers and engaging customers more in the marketplace.
But the challenge of rolling out smart meters nationwide should not be underestimated. Replacing the gas and electricity meters in every home in the country – almost 50m in all – will be a complex process in our diverse and competitive retail market. Energy companies are playing a key role in bringing about this transformation by working closely with consumer representatives to agree a code of practice that will make the installation go smoothly. But leadership is critical – and a robust and realistic plan from government will be central to ensuring the success of Britain's smart revolution.
Christine McGourty is director of Energy UK
