Smart meters a smart choice for curbing consumption

As electricity consumption reaches record highs, utility companies and governments are searching for eco-friendly alternatives to the energy crisis. 

Smart meters can provide real-time readings of energy use, providing more detailed information than conventional meters. Many energy companies throughout North America and Europe are in the process of replacing manual meter readings with these instant, automated systems. 

If consumers know the time-of-use prices for its energy consumption, the hope is that they will think twice before doing a load of laundry or running the dishwasher during peak evening hours. The long-term goal will be to reduce overall electricity demand, therefore requiring less generating capacity. 

Smart meters can cost anywhere from $250 to $500 depending on features. Critics argue that the cost of installing the new smart meters does not justify the expense, especially when used by low energy consumers, such as homeowners. 

The cost of managing old meters is about 50 cents per unit, compared to the nearly $5 per unit for the smart meters. Although expensive to install, the idea is that meters will save money by eliminating the process of sending paid employees on-site to manually read or manage the meters.  

Energy savings are expected to be around 10 percent per household, but in order for the system to be truly effective, the smart meters need to be coupled with a sliding pricing rate and data feedback to consumers. 

With cooperation and ingenuity, smart meters can be another effective step towards reducing energy consumption.