Published 15 May 2023
A smart meter records energy consumption and, when communicating correctly, automatically sends readings to the energy supplier. This helps ensure customers are billed using actual [A] rather than estimated [E] readings.
Accurate billing means customers pay for the energy they have actually used, rather than relying on estimates that may prove too high or too low. However, having a smart meter does not guarantee accurate billing. Communication failures, incorrect meter configurations and supplier billing errors can still result in estimated or incorrect bills.
When estimated bills differ significantly from actual consumption, customers may find themselves with an unexpected debt or credit balance once accurate readings become available.
If a customer is in debt when a contract ends, they may face difficulties:
Where a supplier prevents a transfer because of an outstanding balance, the customer may find themselves paying higher out-of-contract rates while the matter is resolved. However, disputed or incorrect balances should be challenged, and suppliers must comply with the applicable rules governing transfer objections.
If a customer has been overpaying because their estimated consumption was too high, they may instead accumulate a substantial credit balance. Although preferable to unexpected debt, this still means the supplier has been holding money that could otherwise have remained in the customer's business.
Smart meters can significantly reduce these risks by providing regular, accurate consumption data. They also make it easier to identify unusual energy usage, monitor costs and investigate billing discrepancies.
However, businesses should not assume that every invoice is correct simply because a smart meter is installed. Bills should still be checked against actual meter readings, particularly where consumption or charges appear unusually high.
If your smart meter stops communicating, contact your supplier and request an investigation. In the meantime, providing manual meter readings can help prevent estimates from accumulating.
Ultimately, reliable meter readings and accurate billing make it easier for businesses to manage their energy costs, avoid unexpected balances and change suppliers when their contracts expire.
Smart meter + accurate data + correct billing = smarter energy management.
