Smart meters allow consumers to take control of their energy consumption, save money and help to protect the environment. Energy suppliers use smart metering to increase energy efficiency, improve customer relationships, comply with environmental legislation and reduce the need for future infrastructure investment.
Smart meter: a two-way communication system for dynamically sharing pricing information, supporting demand response and establishing time-of-use billing. This last feature can help consumers to make smarter (and cheaper) use of energy, for example by programming their appliances to run when electricity costs less, and in doing so reduce peak generation demand. Operational benefits include distribution system optimisation and enhanced outage management.
Smart grid: an electricity distribution network incorporating two-way communications, advanced sensors, and distributed computers. It can anticipate, and instantly respond to problems, avoiding or mitigating power outages and power quality issues and supporting greater use of distributed generation.