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Commercial Smart Meters: A Guide For Business Owners

Smart meters are an ingenious way to monitor your business’ energy usage, costs and environmental footprint. With that in mind, they are an incredibly useful tool to help reduce your business’s energy bills and optimise the efficiency of your energy use.

In this guide

While the benefits of having a smart meter installed are already undoubtedly compelling, they can seem vague without further investigation.

So it begs the questions:

• What exactly is a smart meter?
• How does it work?
• And can it truly help me manage my small business’ energy usage and costs?

To help answer these questions, the Utility Saving Experts have put together a whistle-stop guide to business smart meters and why you should be using one.

What’s more, if you’re looking to switch your business energy provider, you can find a useful guide and comparison tool  here .

What is a smart reader?

A smart reader is a digital electricity and gas energy meter that utilises wireless technology to measure and provide remote meter readings for display on an easily accessible communications hub.

While smart meters keep track of the energy small business owners have used over month-on-month, they also calculate the current, energy-specific bill they’ve incurred as a result.

This energy consumption data is then fed directly back to the energy supplier, ensuring an accurate record of energy usage is kept, eliminating the need for estimated bills and thus, the risk of miscalculation.

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Why should my business have a smart meter installed.

There are numerous reasons your business should have a smart meter, several of which have been touched upon already. Perhaps the most compelling of these are:

Not only does a business smart meter allow you to accurately track exactly how much energy you use, but it also provides the opportunity for you to optimise your usage too.

In turn, this will enable you to distribute and save energy usage more efficiently, reducing your carbon footprint and bills over time.

Likewise, the direct link between your smart meter and your energy supplier, via means of “smart readings”, will instantly make your bills more accurate. Thus, unwelcome under or overpayments will be eliminated.

Install a smart meter and you will no longer have to spend time submitting monthly meter readings to your energy supplier.

As stated above, your smart meters work by sending readings directly to your supplier, forgoing the need to take readings yourself.

It costs nothing

All energy companies provide smart meter installations and the vast majority do so by default. However, if you didn’t get a smart meter, you can request a smart meter at no extra cost.

It’s part of the UK government’s commitment to reducing energy use

The UK government hopes to have smart meters installed in all homes and businesses by June 2025. This is part of the process of upgrading the UK’s outdated energy industry and achieving the target of reaching net-zero carbon emissions by 2050.

Essentially, smart meters are integral to the future of UK business energy and to the future of our planet.

Can a smart meter help me with the cost of my business energy bills?

Absolutely. A smart meter breaks down your energy bills into their most basic, constituent parts. As a result, you’ll be able to identify, to the kilowatt-hour (kWh), precisely how much energy you’re using.

From there, the smart meter will also accurately calculate the amount of money that energy use costs in pounds and pence. Consequently, as a business owner, you’ll be able to recognise areas where saving energy is possible, thus reducing your energy bills.

Crucially, the more efficient distribution of energy also enables small businesses to reduce their overall carbon footprint.

With green taxes like the  Climate Levy Charge  introduced to penalise businesses that fail to meet new sustainability standards, a smart meter could also reduce the risk of your business incurring unappealing additional fees.

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Do all energy suppliers offer smart meters to businesses.

Yes. As stated earlier, the UK government hope to install smart meters in all UK homes and businesses by the end of June 2025.

In fact, the new series of smart meters, the SMETS2, are registered through a government database and thus, are projected to  simplify the process of switching energy suppliers  as, moving forward, all suppliers will use and install the same smart meters.

With the variety of different energy providers available, it is a considerable advantage to have all business energy companies able to use the same smart grid and meter database.

Thus, as we transition to increasingly green energy and attempt to reduce our energy usage, smart meters will be offered to all businesses.

If you’re planning to switch your business energy provider, use our free  business electricity provider  and  business gas provider  comparison tools to help find the best deal.

FAQ’s

What are the key benefits of smart meters for business.

The key benefits of smart meters for business are:

Saving money

Smart meters allow business owners to track their energy use with precision.

This accurate data, regarding the energy that businesses are using and where and how much it is costing them will enable business owners to identify areas that energy could be saved and thus reduce bills.

As the screw tightens on our unsustainable fuel usage, smart metering also helps reduce the risk of businesses succumbing to current and projected green tax penalties.

Plus, due to a new smart meter being entirely free, businesses only stand to gain money from their installation.

Saving time

Due to the direct smart link between a business’ meter and the energy supplier, the need for the manual submission of monthly meter readings is irradicated, saving business owners cumulative hours of time.

Futureproofing

Over the next decade, the energy sector is to undertake a transformation. Old, unsustainable, carbon-rich fuel sources will be discarded in exchange for environmentally friendly alternatives.

This process also requires businesses and households to reduce their energy consumption, giving the energy sector the opportunity to rely upon renewable energy sources more readily.

Installing a smart meter on your business premises will help you reduce its energy consumption and prepare it for its own green transition.

Are there any disadvantages to installing business smart meters?

No. Installing a smart meter on your business premises is free, makes your business more energy-efficient, saves you money and simplifies the process of paying your energy bills.

Is there a smart meter installation criteria my business needs to meet?

The only real criteria you need to meet to secure your smart meter is whether or not your current supplier of energy is currently installing smart meters in your area.

As part of their national rollout , the UK government is implementing a supplier-led operation. Any location with a gas and electricity meter is capable of receiving a smart meter upgrade, as long as their business energy supplier is installing them.

If your provider isn’t currently installing meters in your area, don’t worry, they will reach you in time.

How do I take manual meter readings?

To take manual meter readings from your gas meter, you’ll simply need to press a button to “wake it up”.

The button will either be an “Ok” button, a red “A” button or a round button next to two arrow buttons. Once pressed, the reading will appear on the small digital screen.

To take a manual reading on your electricity meter, simply read it off the screen, as most electricity meters display the reading at all times.

However, on some, you may need to press the “Ok” or “A” button to summon the reading.

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A guide to smart meters for businesses

Smart meters are often referred to as the future of energy metering, so what are they, how do they work and how can your business get one? In this useful guide we take a look at smart meters and the benefits they could provide to your business.

What are smart meters?

Smart meters are designed to send the usage data they collect straight to your energy supplier, so that you do not need to supply manual meter readings. These efficient smart meters send meter readings via a mobile or WiFi connection. In contrast, traditional gas and electricity meters required manual meter readings with bills often based on estimated consumption.

The latest generation of smart meters are the SMETS2 meters, which have now replaced the first generation of meters. These meters will monitor your gas and electricity supply in real-time, with the data displayed on your smart meter device, so you can monitor consumption closely.

How do I get a smart meter?

Energy companies across the UK are in the process of switching old gas and electricity meters to new smart meters, as part of a wider government initiative. The aim is to use smart meters as part of a smart grid, which will help businesses and domestic properties become more efficient whilst also lowering the cost of energy.

Suppliers are gradually contacting businesses to offer them smart meters, however if your business would like a smart meter now you can request one from your supplier. The supplier will arrange an installation with their own team of engineers, or a third-party installation company.

The engineer will then be in contact to make an appointment to visit your business premises and the total installation time is usually about 1 hour, with the actual supply to your premises only interrupted for 15-20 minutes. You will need to have separate meters installed for your electricity and gas, so you will need to contact each supplier to ask for an installation. There is no cost to have a smart meter installed and there will be very little interruption to your business. To ensure a smooth installation on the day you will need to clear the area around your current meter, so that the engineer can quickly and safely access the area to install your new smart meter. 

It is also advisable to have the code to any alarms to hand, as these can be activated during the installation. The installation engineer will take the time to show you exactly how your new smart meter works, so you can make the most of its features. Many suppliers offer useful features on their website or via dedicated apps, so you can monitor your energy use easily, set budgets and keep a close eye on bills.

Smart meters are a great way to monitor and reduce energy usage, however it is also important to ensure your business is signed up to the best gas and electricity tariffs. 

The latest generation of SMETS2 smart meters are designed to allow businesses to switch suppliers easily, so if you would like to switch to a new supplier in the future, there is no need to have a new meter installed. Whether you are looking to reduce your carbon footprint by signing up to a renewable energy deal or lower bills with a more competitive deal, our team can help you compare and switch. To find out more about comparing energy suppliers or smart meters, please contact our team today.

What are the benefits of smart meters?

By sending real-time information to your energy supplier automatically, you are free to concentrate on running your business. There is no need to regularly supply meter readings and you can be sure that your bills are an accurate reflection of the gas and electricity your business uses.

It is also possible to monitor energy consumption habits more closely, which can help businesses to improve energy efficiency.

If your business knows when the most energy is consumed, it may be possible to move to a more competitive tariff which is more closely aligned to your specific requirements.

Not only could you lower your energy bills, your business could also reduce its carbon footprint by reducing energy consumption and becoming more sustainable. The network of smart meters is also helping to create a smarter more data driven energy system across the country.

This will provide suppliers with the information they need to deliver renewable energy more efficiently, at the times users need it most.

In addition, smart meters are also designed to pick up any issues with your supply. By constantly monitoring your supply information, it is possible to spot and rectify any problems before they have an impact on the business. The best suppliers will also provide tailored advice to help you reduce energy consumption and lower bills.

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Commercial Smart Meters: A Guide For Businesses

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What Is A Smart Meter?

How can installing a smart meter benefit your business, how much will a smart meter help you save, how to get a smart meter installed, compare energy providers at business energy uk, frequently asked questions.

A smart meter will give both you and your energy company regular and accurate updates on how much gas and electricity you use.

You can use a smart meter to negotiate better deals from your provider and manage your energy use in real-time. Below, we'll explain more about business smart meters and the benefits associated with them.

Like conventional electricity and gas meters, smart meters measure your energy usage. The chief difference is that this information is automatically sent to your supplier over wireless networks.

Your smart meter will come with a display, which details your energy usage in real-time, and how much it is costing. This information will enable you to control your use of energy effectively.

There are lots of benefits associated with smart meters for business premises. This includes the following:

Energy usage data in real-time

There is only one place to begin, and this is with the fact that you are going to get real-time information regarding exactly how much energy your business is using.

Being able to take live meter readings, which show you your current usage and the cost, enables you to manage your use of energy much more effectively. If you notice you're using more energy than usual, you can explore this to ensure your monthly bill doesn't end up being too expensive.

Perhaps there is an issue with one of your machines that is causing your energy use to spike? You will be able to act quickly so that your energy costs don't end up being too high.

More accurate energy bills

Another benefit associated with having a business smart meter fitted is that your energy bills will be more accurate.

Rather than paying a figure based on estimated energy use, your energy supplier will bill you based on how much energy your business is actually using.

The benefit of this is two-fold. Firstly, you won't end up paying for way more energy than you are using.

Secondly, if you don't have access to business smart meter data, you may be paying an amount much lower than what you truly owe. This can result in a massive balloon payment at the end of your contract, which is the last thing any business wants.

Get better deals from your provider

Another reason to get a smart meter at your business is that you will be able to negotiate better energy deals with your current provider and other energy companies too.

As you have accurate information about your energy consumption, it puts you in the best position to save money by negotiating a deal that makes sense for your business based on your current usage.

Unfortunately, it is impossible to say how much money you will save with a new smart meter. This is because there are a lot of different variables that are at play here.

This includes the following:

The amount of business energy you currently use - If your business uses a substantial amount of energy right now, there is going to be greater potential for you to lower your expenditure with accurate readings.

How energy efficient your business is at present - Smart meters encourage energy-saving activities. The more inefficient your business is right now, the greater your savings are going to be.

How much you're overpaying at present - It's likely you are receiving estimated bills at the moment. If you are paying too much, switching to a small business smart meter will save you money without even changing your energy habits.

As you can see, there are a lot of different factors that influence how much money you can save by getting a smart meter at your business. However, the potential to save is huge, and there are lots of different ways you can go about cutting costs at your business.

Considering all of the benefits mentioned above, you may be wondering how to install smart meters on your business premises. The current smart meter initiative in the UK means that all providers need to offer gas and electricity meters to every small business and home in the country.

Therefore, you should be offered a smart meter as part of the current smart meter rollout.

However, you do not have to wait until you are contacted about this. You can get in touch with your energy supplier now and ask them to install a smart meter at your business as soon as possible.

In terms of electricity , smart meters should be installed at all electricity sites that fall into profile classes 1, 2, 3, or 4. This does include the vast majority of non-domestic customers.

This code was created to make sure that high service standards are provided, covering not only installing smart meters but fault resolution and testing as well.

Companies also have the right to reject the offer of a smart meter. If you would prefer, you can also ask for an advanced meter to be installed instead, which will only send data to the supplier.

If your business does not fall into the categories mentioned above and is not eligible for a free smart meter, this does not mean you cannot have one installed at your premises to improve your monthly meter reading process.

As you can see, there are a lot of benefits associated with smart meters for business premises. While business smart meter installation should not cost anything, you may want to consider switching energy suppliers, so that you can move onto a cheaper tariff and make the most cost savings.

Here at Business Energy UK, we make it as easy as possible to find the best energy supplier for you. You can compare energy providers on our website, where you will find all of the information you need to keep your energy bills as low as possible.

How much are smart meters for businesses?

You do not have to pay to have a smart meter installed at your business, so there is no reason not to benefit from this. Simply contact your energy supplier and enquire. Plus, you may find that you are able to reduce your monthly energy expense with a business smart meter.

Do all business energy suppliers offer smart meters?

The majority of energy suppliers provide smart meters, yet there are a few companies that currently aren't doing so. These companies will need to make the switch soon, however, as all energy customers must be offered a smart meter by 2024, so time is ticking.

How long does it take to install a smart meter?

It will typically take between 1.5 and 2 hours to have your smart meter installed. However, the time can differ from business to business, and it does depend on where your current meters are situated.

What Does A Smart Meter Look Like?

Many UK businesses have started making the switch to smart meters to save energy, lower their energy bills and save money.

Installed as part of a nationwide UK government initiative, these smart meters for businesses promise to streamline the meter reading process and bring about more accurate business energy bills .

With their sleek design and easy-to-read LCD screens, smart meters are quickly becoming a mainstay in many UK businesses concerned with cutting down on their energy bills and reducing their carbon footprints.

What is a Smart Meter?

A smart meter for businesses is an electronic device that is installed in place of older, standard meters.

These smart meters automatically track and record your business’ monthly electricity and gas usage. They are connected – like mobile phones – to a wireless network and automatically send your consumption figures to your energy supplier who then bills you for your monthly usage.

The meters also show you exactly how much energy your business is using and how much you’ll pay for your consumption at the end of the month.

This can help many business owners keep track of and curb their energy usage.

Should I Get a Smart Meter?

One of the main benefits of installing a smart meter is that it removes the need for taking manual meter readings.

If you use a traditional meter and you forget to submit your monthly readings, your energy supplier will make an estimate of your usage, based on your past bills. These estimates can be incorrect leading you to pay more than what you should.

Smart meters help avoid estimate inaccuracies and ensure that you pay only for the energy you used.

These meters also help you keep track of your gas and electricity usage as your usage is displayed on their screen. Being more aware of the amount of energy you consume can help reduce your overall energy use.

If you’re still sure you should get a business smart meter, consider the advantages and disadvantages of having a smart meter installed:

Advantages of a business smart meter

• No manual meter readings and estimated bills
• Accurate energy bills
• Easily track your energy consumption
• Encourages energy saving and helps reduce your business’s carbon footprint
• Gives businesses access to cheaper energy tariffs
• Makes the process of switching energy suppliers easier

Disadvantages of a business smart meter

• Smart meters use a mobile signal (can cause issues in an area with patchy mobile reception)
• There’s no guarantee your business will pay lower energy bills if you do not reduce energy consumption
• It can lead to excessive monitoring
• If you switch to another supplier, you may have to migrate back to a standard meter.

Can I Get a Smart Meter?

Not all UK businesses are eligible to have a smart meter installed right away.

There are several factors you need to consider before your smart meter installation.

Meter installation requirements:

• Meter type: Installation will depend on the current meter you use and whether it is compatible with the new smart meters.
• Space: The installers will need to check if your current meter installations allow for enough space to install the new smart meter and its communications hub.

Mobile network:

• First, the mobile network in your area needs to be checked. If the signal is weak or you do not have a signal, your meter will not be able to send the data to the Data and Communications Company.

Additionally, energy suppliers have been instructed to supply businesses with a smart meter if they fall within the following two categories:

• Businesses that use less than 732 MWh of gas annually
• Electricity customers in profile classes 1 to 4 (this profile class appears on your bill)

What Does a Smart Meter Look Like?

Smart meters for businesses have a white face and an LCD screen.

A smart meter is made up of three main components:

• Smart meter: You’ll have one for gas and another one for electricity
• A communications hub: Sends your consumption readings to the energy supplier
• Energy monitor: Displays your energy consumption in real-time

Types of Smart Meters

There are different business smart meters currently available on the market:

• SMETS1 smart meter: These are the earlier version of smart meters that were installed in the first phase of the smart meter rollout. They were installed by SSE Metering and may have compatibility and communication issues if you move to another energy supplier.
• SMETS2 meter: These are the new generation of smart meters and continue to work even if you decide to switch energy suppliers.
• AMR meters: These ‘Automatic Meter Reading’ meters allow an appointed Data Collector to do remote meter readings which are sent to your supplier.

How Do Smart Meters Work?

Instead of you having to do a manual energy reading, smart meters automatically read and record your company’s energy consumption.

These meters read and record your gas usage every 30 minutes, while electricity usage is recorded in real-time.

As the consumer, you have the option of how often you want your usage information to be sent to the supplier: It can be sent every 30 minutes, once a day or at the end of the month.

The more readings that are recorded and sent to your supplier, the more accurately the suppliers can note when and why your consumption fluctuates. This information can be valuable when negotiating a new deal when you renew your contract.

Find Out More With Business Energy Comparison

Except for paying often overestimated energy bills, not many businesses are certain of what their monthly gas and electricity usage should be.

Paying high bills contributes to the financial strain many companies face in current times.

By doing a thorough business energy comparison , owners can have a better understanding of just how much gas and electricity is used and how much they should pay for their energy usage.

If you manage a small or medium-sized business or are heading a large business , knowing your business’ correct energy consumption figures, can help you implement energy efficiency measures which can contribute to lower utility bills .

Frequently Asked Questions

Is installing a smart meter compulsory.

No, installing a smart meter is not compulsory. If you do not want a smart meter installed, you are not obligated to do so. Should you decide to install a smart meter, your energy supplier will install it without charging you for the installation.

Do I have to pay for my smart meter?

No, as part of a UK government incentive, smart meters are provided and installed free of charge at households and businesses. The cost of the installations is absorbed in all users’ utility bills as part of the smart meter tariff you see on your monthly bill.

Will installing a smart meter help reduce my carbon footprint?

Yes, the Data and Communications Company estimates that installing smart meters can help British homes and businesses reduce their CO2 emissions by more than 600,000 tonnes a year.

How secure are smart meters?

Smart meters are designed to operate on their own dedicated, secure, wireless network. The system does not use the internet and is designed to prevent any hacking or interception of information. Your details are not stored on the meter and are only used to calculate your energy bill.

Additionally, energy providers are prohibited by UK laws from sharing your personal information or electricity usage information with third parties.

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Smart Meters for Businesses Explained: All You Need to Know

Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here .

What are smart meters for businesses?

How do smart meters work, how to read a smart meter, pros and cons of smart meters, how to get a smart meter for your business.

While there are significant differences between domestic and business energy, you might be surprised to learn just how much the products have in common.

For example, many of the tips you would use to save on your gas and electricity at home can apply to how you run your business too. That includes making sure you are being billed correctly for the energy you use by installing smart meters at your business.

And there couldn’t be a more important time to do so. The UK energy crisis has led to a sharp increase in business energy bills, meaning the last thing you want at the moment is to be paying for an estimated usage that is higher than your actual energy consumption.

Below, we take a look at how smart meters for businesses work, their benefits and disadvantages, and how you can get one installed.

» MORE: A quick guide to business energy in the UK

Available for both your business electricity and gas, smart meters are gradually replacing traditional energy meters in Great Britain.

Just as you might have one installed in your home, you can get a smart meter at each of your business sites. This will give you more accurate business energy bills, based on your actual usage rather than an estimate.

You may also receive an ‘in-home display’ that will show your real-time usage, allowing you to try to build a more energy efficient business.

Do I have to have a smart meter at my business?

Your supplier is required to take reasonable steps to offer you a business smart meter in non-domestic properties. However, you do not have to say yes. It is important you weigh up the benefits, and any potential disadvantages, before making your decision.

Instead of taking monthly business gas and electricity readings and manually submitting them to your supplier, a business smart meter will do this automatically for you. This data is sent through a wireless network designed specifically for smart meters, one that isn’t reliant on your wi-fi connection.

While smart meters record your usage every 30-minutes for gas and in close to real-time for electricity, you can decide how often your data is passed on to your supplier. That could be every half an hour, once a day, or once a month.

The more frequently your readings are taken, the better your supplier will be able to understand the whens and whys of your usage. This could result in more accurate advice on improving your energy efficiency, and potentially a more personalised deal when it is time to renew your contract.

If you are worried about your data security, however, your supplier should allow you to opt out of it being used for anything other than calculating your business energy bills. This is unless your bills are ‘half-hourly settled’. You will also need to consent to your data being used for other purposes, such as marketing.

One of the main points of having a business smart meter is that you wouldn’t regularly need to ‘read’ it in the same way you would a traditional meter. This is especially true if your supplier has also provided you with an ‘in-home display’.

If you do need to take a reading directly from your smart meter, say if you have switched energy suppliers , then you will need to search for the instructions for the specific meter you have installed. This is because there are a number of models, with different settings, for both gas and electricity.

Both your supplier and Citizens Advice can offer you guidance on how to read your smart meter.

If you haven’t got one already installed, then there are a number of reasons why getting a business smart meter might be a good idea.

• Save time – automatic meter readings means you won’t need to set aside time each month to send your data over to your supplier.
• Save money – a more accurate energy bill may end up saving you money you were spending on estimated usage you were not actually consuming.
• Save energy – by watching your real-time usage, you can better understand where and how your business might be able to become more energy efficient.
• Free installation – while the cost of smart meters has been absorbed by energy bills in general, you will not pay up front for its installation.
• Easy switching – if you have a Smart Metering Equipment Specifications 2 (SMETS2) meter, you can switch business energy suppliers without it disrupting your readings.

Yet there are some drawbacks to smart meters. These include:

• They are not available for every business. This could be due to a weak network signal in your area, or a lack of space for the meter to be installed at your business premises.
• You may be charged for part of your smart meter upgrade, and access to your energy data. However, if you are a micro business, i.e. you have nine or fewer employees, you must be told in advance of any costs related to your installation.
• There are currently no plans to introduce smart meters in Northern Ireland.

» MORE: How to create a business energy audit

It is very easy to get a smart meter for your business. You just need to follow these three steps:

• If your supplier hasn’t contacted you already, you can request that a smart meter is installed at your premises.
• You will then need to book a time and date for the smart meter installation.
• The installation of each smart meter, one for electricity and one for gas, should take around an hour or so.

If you rent your business premises and pay for your own energy bills, then you can still request a smart meter from your supplier. However, you should check with your landlord first, in case there is anything in your tenancy agreement that prohibits their installation.

If your landlord pays for the energy at your property, meanwhile, it is up to them whether or not a smart meter is installed.

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About the Author

Connor is a lead writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and…

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• Smart Metering for Business

Smart Metering systems within businesses provide the insight you need to make energy a controlled and accounted for cost.

Home » Energy Management Services » Energy Data Analysis » Smart Metering for Business

• Energy Data Analysis

Business Smart Meters

Data is the key to accurate billing, budgeting and developing business cases for energy efficiency projects. Smart Meters provide accurate consumption data to give you the insight you need to make energy a controlled and accounted for cost.

Business Plan for Smart Meters

Offering highly intelligent functions to clients, smart metering systems are the updated and modern alternatives to electricity and gas meters.

Energy is inherently complex for large businesses. Measuring consumption and the impact of energy efficiency projects across entire estates requires automated data collection and reporting. Having a business smart meter ensures that you understand when and where your energy is being used. Read more on Ignite’s energy data analysis services and how they unlock the insight you need .

Smart meters provide half-hourly consumption data that makes it possible to clearly see energy wastage and verify any savings achieved. At the same time, it validates billing and ensures sites are staying within budget.

Ignite are experienced in implementing smart metering for businesses. We have assisted several large organisations, including Network Rail and Unite Students , with business smart meter installations.

Why Choose Ignite Energy

Ignite offer a total energy management solution for large businesses. Tying in every aspect of energy from data through to energy efficiency implementations, Ignite are the perfect choice for any organisation looking to reduce costs.  Contact us  today and our team will be able to assist you.

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Smart metering for business.

Attachment 1

The pros and cons of smart meters – should you switch?

With gas and electricity prices expected to rise later in 2024, smart meters could help you to keep tabs on your usage. We've compared them to regular meters.

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The cost of living crisis has largely been driven by soaring energy bills. But could smart meters save you money on your gas and electricity?

Energy costs more than doubled at the height of the energy crisis in 2022. They still remain hundreds of pounds higher than they were five years ago in 2019, even with the Ofgem energy price cap falling 7% on 1 July.

Prices look set to soar again this autumn and winter , with energy consultancy Cornwall Insight predicting a 10% rise in the price cap . It means some of the fixed-rate deals currently on offer could be worth considering.

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Smart meters, which send readings at regular intervals to your supplier , can help you to closely track your energy usage and keep your costs down. But, if you currently have a regular meter, should you move across to one?

The pros of smart meters

The first big benefit of a smart meter is that it could help make your bills more accurate. It will send readings to your supplier on a daily or half hourly basis, depending on what sort of deal you opt for.

For example, you will have to have half hourly readings if you wish to sign up for tariffs with off-peak rates - like EV tariffs - or want to take part in energy saving events . These tariffs/events could save you money.

Your smart meter will also save you from having to manually send meter readings to your supplier, as you would with a standard meter. If you don't send readings in on a regular basis (i.e. at least once a month), your supplier will estimate your bills. This could mean you end up paying more than you have to.

Another useful benefit of smart meters is the in-house display you'll get alongside your smart meter. This small monitor will show you your energy use to the penny.

The gadget can help you to figure out how much energy you use when you turn on certain appliances, and which habits and chores are costing you the most. It means you can adjust your usage to cut your bills.

Shifting your energy use may also allow you to be greener. During off-peak hours (typically weekends, working hours and overnight), the national grid tends to rely more on renewable energy production. Meanwhile, peak times usually see a larger reliance on fossil fuels - especially during the winter.

Finally, when it comes to switching, a smart meter can make life easier. It means you won't have to submit a final reading to your old supplier – although, it's always worth making a note in case something goes wrong with the automatic readings.

And, when significant alterations to the Ofgem energy price cap occur, you won't have to send readings in ahead of the changes to unit rates . It is still good practice to do so, as it will ensure you do not pay over the odds for your energy.

The cons of smart meters

The government had been aiming to offer a smart meter to every home by mid-2025. However, figures released by the Department for Energy Security and Net Zero (DESNZ) on 30 May showed 37% of homes were still yet to have one fitted by the end of Q1 2024.

With the rate of domestic installations falling 9% quarter-on-quarter, and 11% year-on-year to 747,000, it suggests it may be difficult to get an installation appointment.

That's not to say all homes want one fitted. Many people have refused over concerns about the amount of insight this gives energy suppliers. There have also been concerns around smart meters being targeted by hackers. But there is no evidence that this has happened.

For households with a smart meter, the biggest issue is when the meter malfunctions. According to the Public Accounts Committee of MPs, three million smart meters weren't working properly as of March 2023. This figure has jumped to 4.3 million, according to government data released in March 2024.

Common issues included suppliers not receiving readings, the meters not displaying information to consumers, or both. Some have not been working because they haven't been commissioned properly at the point of installation.

Many of the other meters had malfunctioned because they were first generation smart meters (known in the industry as SMETS1), and therefore couldn't connect properly to the centralised infrastructure suppliers use to get readings. If you have a first generation meter, you will need to get a new one installed.

The pros of traditional meters

Many people choose to remain on traditional meters. This could be because they want to control the information they hand over to their energy supplier.

It could also be down to the type of meter you have. For example, economy 7 and economy 10 meters have cheaper rates than standard meters, if you live in a single fuel household. Suppliers no longer fit these meters, and only a few offer tariffs for them.

If your meter is accessible and you're willing to submit readings every month, then it there will be no extra expense than if you had a smart meter (although you won't get the same insights into your usage).

The cons of a traditional meter

Of course, the flipside is that if your meter is quite hard to get to, you may not be able to submit readings to your supplier. In this instance, you may end up being charged extra for your usage, as your supplier will have to go off estimates rather than your actual usage data.

You can get your money back if you can show you've overpaid. But it may take weeks or even months for the compensation to come through. Having estimated bills could also lead to you underpaying, which might result in a hefty future bill.

Should I go for a smart meter?

The decision you make will depend entirely on your personal circumstances.

If you want to know exactly how much energy you’re using and where, and think this would help you to keep your bills down, you would benefit from getting a smart meter. They’re also a better option if you think you won’t be able to submit monthly readings to your supplier.

And you could be able to save money, as smart meters allow you to access certain types of tariff that may better suit your energy use.

However, if you think you’d be diligent about submitting monthly readings or have a meter that means you'll pay less, then you should stick with your traditional meter.

Energy market changes mean it may be worth switching to a smart meter in the near future. The government is currently looking at ways in which consumers could access cheaper unit rates when wholesale energy prices drop. Say you wanted to take advantage of this change - some tariffs already offer something similar - you would almost certainly have to have a smart meter. So, it's worth revisiting these pros and cons as the energy market develops.

Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.

Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV. 

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years. 

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. You will now find him writing for MoneyWeek. Away from work, Henry lives in Edinburgh with his partner and their whippet Whisper.

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Small Business UK

Advice and Ideas for UK Small Businesses and SMEs

Smart meters for business: Your FAQs answered

Here, we explore the frequently asked questions about smart meters for small businesses.

The smart meter rollout is well underway, and every home and small business in the country is due to be offered one by 2025.

Here we answer all your frequently asked questions about smart meters, including how much they cost, which businesses are eligible, and whether they’re secure.

Answer: A smart meter is the new generation of energy meters for the supply of gas and electricity, which are being rolled out around the whole of the Great Britain.

Answer: Your smart meter measures how much gas and electricity you use and securely shares this directly with your energy supplier at least once a month. With 98% of small business owners still working evenings and weekends, any automation is welcome, This is where smart meters come in handy. You won’t have to take any meter readings manually — your smart meter will send automatic readings to your energy supplier via the secure smart data network.. This works in a similar way as other wireless systems but does not use the internet.

Answer: Knowing exactly how much gas and electricity your business has used allows you to know exactly how much you need to pay to your energy supplier. This means rather than paying for your energy on an estimated basis, you can pay the precise amount.  In 2024, small business owners reported spending 36% of evenings and weekends on admin. Having your energy automatically tracked and sent to your supplier cuts down on admin as well as costs.  

Answer: The smart meter rollout is in full flow, with over 33 million units installed in homes and small businesses across the UK. This means that your business either has already, or will be offered a smart meter as part of this rollout.

Answer: While the government requires energy suppliers to offer a smart meter to all eligible small businesses, there’s no legal obligation for you to accept. You’re able to refuse installation and then request a smart meter at any point in the future at no extra cost. 

Answer: Yes, both homes and businesses are included in the smart meter rollout. If your business is run from home, your business energy usage will be included and recorded as part of your domestic energy usage. If you have a separate meter in your home to monitor business energy usage, speak to your energy supplier about upgrading it to a smart meter.

Answer: If you rent your office, shop or unit and the landlord pays the energy bills, ask your landlord if they can get a smart meter. That could help ensure energy costs are shared fairly between all the businesses on site, based on how much energy you each use.

Answer: Get in touch with the energy broker that arranged your current energy supplier and they’ll be able to tell you. If the broker doesn’t  immediately know, then it will contact the energy supplier on your behalf because this is one of the services that energy brokers offer.

Answer: Once you have confirmation from your energy supplier that your business premises is suitable for a smart meter, the energy supplier will arrange an appointment to fit the meter. The whole installation takes roughly two hours and your gas and/or electricity will be turned off for a short period of time. The supplier will try and arrange a time that works for you and creates as little disruption as possible for your business, so you can take it off your to-do list.

Answer: Most energy suppliers can be fairly flexible about installation timings, so you can find a time that will limit disruption to your business, whether that’s in the evening or even on a Saturday. 27% of small business owners say that giving up their free time was the biggest sacrifice they had to make when setting up a business, but smart meter installation won’t add to this. Remember, your electricity and/or gas will have to be turned off while the installation takes place.

Answer: The installers are full trained and experienced in the process of fitting smart energy meters so you can have complete confidence in their work.

Answer: If you your business hasn’t yet been offered a smart meter, there’s nothing stopping you reaching out to your energy supplier directly and asking for one. As the official rollout isn’t due to be wrapped up until 2025, it could just be that you haven’t reached the front of the queue yet. 

Answer: Yes, you can switch energy suppliers if you have a smart meter for business. If you have a second-generation smart meter, your meter will continue to send readings automatically and there shouldn’t be any disruption to your meter billing.

Answer: Your smart meter will take readings either every half hour, once a day, or once a month. Different suppliers have different standard reading frequencies, and you can choose which one you prefer. An every half hour frequency offers you the most detail about your business energy usage.   When the Market-wide Half-Hourly Settlement is introduced, actual energy consumption for all homes and small businesses will be recorded every half hour as standard. 

Answer: You shouldn’t have to take a reading from your smart meter, but if you do want to monitor your own energy usage, or you switch suppliers and are required to submit a first reading, it is possible.    The engineer who installs your smart meter should show you how to take a reading from your specific model or you can ask your energy supplier or consult the instruction manual. 

Answer: Even if your smart meter stops automatically sending readings to your supplier, it should still be recording your energy usage. You’ll need to provide manual readings until your smart meter can be repaired or replaced. And even if you switch suppliers, your current supplier is responsible for maintaining your meter, so there’s no need to contact the supplier who installed it. 

Answer: Smart meters have been designed in conjunction with both the government and GCHQ to ensure your business data is secure. Smart meters do not use the internet, and they have their own closed, dedicated communications system. Smart meters have been designed to ensure that security best practice has been incorporated at every stage. 

Answer: You may be offered an in-home display alongside your new smart meter. This portable screen is an easy way to monitor how much energy you’re using and how much it’s costing you in real time.

Answer: Measuring accurately how much energy businesses use helps with the bigger challenge of creating sufficient energy to power the nation’s business needs and helps to implement more energy efficient methods, including wind and solar and reducing the dependence on fossil fuels. So, while your energy business use is very small, when looked at on a national basis every little bit helps towards the country’s longer term climate targets.

Answer: Smart Energy GB is a government-backed organisation tasked with informing businesses and consumers about the benefits of smart meters. The national campaign is tasked with helping everyone in England, Scotland and Wales understand smart meters, the national rollout and how to use their new meters to be cleaner and greener with their energy use. 

Research was carried out by OnePoll for Smart Energy GB between 14th-19th February 2024 and surveyed 500 GB small business owners who have set up their own business. 

For more information about the how to install a smart meter in your workplace, visit the Smart Energy GB website at smartenergyGB.org .

See also: 5 benefits for your business of getting a smart meter you might not know

This article is part of a paid-for information campaign for Smart Energy GB .

Henry Williams

Henry Williams is a freelance journalist specialising in small business topics, such as Making Tax Digital. More by Henry Williams

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How smart meters can empower consumers to engage with their energy use

Smart meters can help people rid themselves of unnecessary meter readings and potentially reduce energy waste and costs. But what role do consumers themselves play in making the most of this technology?

Bringing your questions and concerns about smart meters directly to NYSEG to get an explanation

BUFFALO, N.Y. (WKBW) — This summer 7 Problem Solvers has received more than a dozen complaints from NYSEG customers regarding smart meters.

The meters are a new technology that NYSEG believes will benefit customers to accurately measure their energy usage, and send that information back to the company.

Many customers emailed me about NYSEG bills that they said had been higher after smart meters were installed. I have done multiple stories on this issue.

In July, I spoke with an Alden resident who said she was experiencing higher-than-normal bills .

After that story aired, I continued to receive complaints about smart meters so I followed up with NYSEG.

“The main purpose of a smart meter is to measure accurate readings," said Shelby Cohen, NYSEG Senior Manager for Communications. Cohen said bills could be higher for multiple reasons .

We continue to receive complaints, so we followed up again. I spoke to Cohen about your questions and concerns.

SCHWARTZ: Have you seen, in any other part of New York State, bills go up for NYSEG customers after the installation of smart meters?

COHEN: We are not seeing higher bills due to smart meters, and we’ve installed more than 700,000 smart meters so far across New York State.

SCHWARTZ: One customer told me that her bill went up after the smart meter was installed because she was told there was an error by the third-party company installing it. It was fixed, but she would’ve paid hundreds of dollars more if she didn’t speak up. So my question to you is, has NYSEG looked in to see if there are any installation issues? Will the company be looking into this if this is a problem?

COHEN: I will tell you that NYSEG and RG&E process two million bills per month, and out of those two million bills we get complaints about less than a half of one percent of those, so no we have not seen a causation between high bills and smart meter installations.

SCHWARTZ: NYSEG's website states that meters do give off a very small amount of radio frequency, and customers tell me they still don’t feel safe and worry about the radiation.

COHEN: Assessing risk is something that NYSEG takes very seriously. We submitted for approval by the New York State Public Service Commission to roll out smart meters, but that approval from the NYS PSC came with the understanding that radio frequency admitted by smart meters is well below the limit set by the FCC. We have also done our own studies. We have a meter lab in Rochester, and we have a meter lab in Binghamton, to make sure that the values of RF being admitted are consistent with what we were hearing on the national scale. They are very safe. It is far below what you’re gonna get from your cell phone that you put next to your head.

  SCHWARTZ: If someone doesn’t want one because of worry, concern or discomfort why should they be forced to pay the $13 opt-out fee?

COHEN: So that we can keep meter reading staff on, and so that we can maintain legacy meters.   SCHWARTZ: What about the people who want to read their own meters?

COHEN : We still have to assess the opt-out fee, because they’ll become part of the opt-out group, and that’s another part of what’s handed down by the PSC of New York.   SCHWARTZ: Some customers tell me they shouldn’t be penalized financially if they don’t want a smart meter. what do you say to customers who say that this company is not being fair with options?

COHEN: Our customers hold us accountable, and that’s really important to us. because we wanna be accountable to our customers. However correlation does not equal causation, and the reasons that people infer for a bill that has something on it come from a variety of factors, and may not be because of the reason that they assume

Cohen encourages any customers to call 1-800-572-1111. You can also learn how to understand your bill here .

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KSERC defers decision on Thrissur Corporation Electricity department’s smart meter roll-out plan under TOTEX model

The regulatory commission has directed the department to submit revised proposals for implementing the ‘smart metering’ project under capital expenditure (capex) mode, in line with a decision taken by the state government..

Updated - August 25, 2024 06:37 pm IST

Published - August 25, 2024 06:28 pm IST - THIRUVANANTHAPURAM

The Kerala State Electricity Regulatory Commission (KSERC) has put off taking a decision on a proposal submitted by the Thrissur Corporation Electricity department (TCED) for smart meter roll-out on total expenditure (TOTEX) mode.

Passing orders on the TCED’s capital investment plans, the Commission has directed the department to submit revised proposals for implementing the smart metering project under capital expenditure (CAPEX) mode, in line with a decision taken by the State government.

The Commission noted that the Kerala State Electricity Board (KSEB) – the State’s biggest power distribution licensee – proposes to use the CAPEX model for smart meter roll-out for its consumers. (The State government had decided to adopt the CAPEX model for KSEB’s smart meter roll-out plan, amid fears that the TOTEX model would usher in privatisation in power distribution.)

One of the smaller power distribution licensees in Kerala, the TCED had proposed to install 40,975 smart meters at a cost of ₹25.88 crore under the centrally-aided Revamped Distribution Sector (RDSS) scheme. TCED buys power from the KSEB and supplies electricity to 12.65 sq km (old municipality area) out of the total area of 101.42 sq km of Thrissur corporation.

Central grant

While the Central government had given the go-ahead for the TCED proposal in 2022, the central grant component constitutes only 15% of the total project cost. The balance amount of ₹22 crore would have to be raised by TCED.

While deferring approval for TCED’s smart-metering plan, the Commission said it would examine a revised proposal based on the CAPEX mode. In January this year, the State government had decided to discuss with TCED and the Local Self Government department whether TCED consumers can be equipped with smart meters on CAPEX mode. A decision is still awaited on this, the Commission noted.

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