Important Benefits of Smart Meters for Consumers and Electric Company

When it comes to electricity consumption, just how “smart” are smart meters? What is a so-called “smart meter” even capable of? These devices, which an estimated 70 million American homes are using (according to the U. S. Department of Energy), manage and record usage and performance of electronic devices. Smart meters cut out the middle man (or technician) by accurately assessing data on electrical usage in real-time or pre-determined time intervals—thus the “smart” moniker. Sounds pretty…smart, huh? Smart meters for consumers are used to replace traditional analog monitors that are read manually on a monthly basis. These modern meters are being implemented at a rapid pace whenever and wherever possible.

 Now that we know what a smart meter is, let’s weigh the advantages and disadvantages of smart meters for consumers and electric companies alike.

 

“Pros” for Consumers and Electric Companies:

•         Cost benefits and competitive pricing
•         Detailed data and increased performance
•          Decreased carbon footprint

 More detailed data can help consumers track their usage and pinpoint ways to cut down on their usage, saving money and electricity—a “win-win” for consumers’ pocketbooks, electric companies, and the planet!

 Casting a wider net of data also allows for improved functionality of electrical grids, resulting in less or shortened power outage periods by locating, troubleshooting, and resolving issues more quickly. This is also beneficial to both parties.

 Yet another mutual benefit includes the ability to enhance pricing options. The monetary gain electric companies will see from having to spend less on manpower via in-person monthly readings will in turn allow companies to offer better rates to their customers.

 Prepaid electricity meters, much like a prepaid credit card, would allow for consumers to closely monitor and control their usage habits, in addition to paying electric companies for their services upfront. This encourages more environmentally-friendly habits as well.

 “Pros” for Electric Companies:

•          Profitability
•          Fewer building costs

As aforementioned, one “pro” that smart meters afford is the ability to eliminate in-person monthly meter readings. The data provided is more accurate and precise, as opposed to monthly estimated usage. Being able to save money and increase profitability, coupled with the ability to collect a larger amount of data via a digital grid, are other positives associated with these tech-savvy tools. A need for less power plants being built will also boost companies’ financial gain. 

 

“Cons” for Consumers

•         Consumer Privacy Concerns
•          Installation Fees
•          Increased Responsibility/Maintenance

 The technological advances made possible by smart meters also come with potential problems. One concern is the collection of personal information, such as hourly electrical usage, that some view as unnecessary and a violation of users’ right to privacy. In an age of increasing monitoring and intrusion into consumers’ personal data, any superfluous monitoring puts a negative spin on imposing technologies. Consumers may also need education on utilizing the meters to their advantage, which could be difficult to convey or provide. The inability to correctly read the data would be a major disadvantage to consumers, possibly breeding further discontent.

 

The installation of smart meters also come with fees that fall on the consumer, despite their desire to even have such a device. Consumers will have the added responsibility of monitoring the meter for potential problems, requesting maintenance to avoid unwanted financial strain that could arise from a malfunctioning meter.

 

“Cons” for Electric Companies

•          Additional Costs (Initially)
•          Addressing Public Concerns and Criticisms
•         Responsibility for Securing Personal Data
•          Commitment to Changing Technology

 As with the implementation of any major change or industrial shift in operations, companies that take on the smart meter movement will be charged—literally—with procuring the devices, software, data storage, and additional staff needed to make the switch. Employees will also need the training to install and monitor the meters. All of this comes at a price—at least initially.

 The privacy concerns that come along with advancing technology undoubtedly will arise—and need to be addressed. Electric companies utilizing smart meters will have to accept criticism and address worries, finding a solution both parties can feel comfortable with. Public relations often play a key role in controlling consumer backlash and communicating effectively with all stakeholders to ensure success and a smooth transition. Cybersecurity will need to be acquired in order to assure consumers and electric companies of a more secure database. Actions speak louder than works, and electric companies will need to provide more than lip service in regards to data protection.

 A thorn on the rose of ever-evolving technology is the need to keep up-to-date. Rapidly changing updates and upgrades can solve functionality issues and increase reliability, but come at a price. Keeping up with technological advances can also prove to be a challenge for more rural areas or consumers who are “off the grid.”

 The consensus? Overall, it seems the advantages of smart meters for consumers and electric companies outweigh the disadvantages, particularly when the timeframe of most of the disadvantages are taken into consideration. A dynamic shift from one mode of operations to another won’t be without challenges, but will assuredly be more beneficial in the long run for all parties involved, with proper protocols in place.