Can a Smart Meter Save You Money On Energy Bills? - Broke in London

Can a Smart Meter Save You Money On Energy Bills?

Guest post by Vlad

With the cost of living crisis and soaring energy bills, energy efficiency has become a priority for many households across the UK. As people look for more ways to save on their energy bills, smart meters have become more popular, with 24.2 million homes and businesses choosing to have them installed. But the question remains – is it worth getting a smart meter when living in London?

The bottom line for most people is whether it can actually save you money in the city. Here, we’ve put together the pros and cons of having a financial meter in the country’s capital so you can find out if they can save you some pennies in the long run:

What is a smart meter?

A smart meter is a device you can have installed in your home or business that monitors your gas and electricity usage. It’s connected to an in-house display so you can track in real-time how much energy you’re using and how much it will cost you. It also automatically sends all your meter readings to your energy provider so you don’t have to do it yourself.

It has a very simple setup as once you’ve plugged it in, using a power cable such as these, it communicates directly with your energy supplier.

How affordable are the bills?

Most people living in London, for example, will be on a variable price contract with their energy supplier which is currently set at around £1,971 a year for an average household. However, this will likely increase with Ofgem predicting that the energy price cap is set to jump by 80 percent to reflect rising wholesale energy costs.

This means you could be paying as much as £3,549 a year. Customers on fixed contracts will continue to pay the fixed rate until the contract ends. If this sounds overwhelming, just remember that the price cap limits the rates you pay for the energy you use, rather than your overall bill. There is also help available if you need assistance paying your energy bill in the future.

Can smart meters save you money?

The simple answer is yes – smart meters can save you money because you gain a better understanding of how your appliances work and how much energy you’re using. This means you know where you’re able to cut down usage and it encourages better energy habits. You can also do away with manual meter readings and smart meter formats are generally very easy to understand.

On the other hand, there have been complaints of forced installations and incorrect bills, and there is no guarantee you’ll save money. This will only happen if you make positive cutbacks based on its monitoring.