A smart meter measures how much electricity you use and when, and sends this information back to your electricity retailer. Your retailer uses this information to make sure your electricity bill is accurate.

Smart meters can also do other things remotely, like measure the power quality at your home or business and notify your electricity distributor when the power goes out.

Your electricity retailer will be able to provide you with more accurate information about your electricity use through a website or app, that can help you understand how you use electricity in your home and find a better deal.

New types of prices

Electricity retailers are developing new types of prices that could help you save money. A smart meter will let you access these new prices.

If you're mainly using your electricity during off-peak and shoulder periods—or are willing to shift your usage to these times—a ‘time-of-use’ price could be cost effective. A time-of-use price is higher at peak times like weekday mornings and afternoons, when it is more expensive to produce and transport electricity, and lower at off-peak times.

If you decide to take up time-of-use pricing, the more electricity use you shift away from peak times the more you save. For example, you could turn your dishwasher on before going to bed rather than after dinner, or use your clothes dryer only on weekends. There are further savings to be made if you have appliances that use a lot of power, such as pool pumps, air conditioners or in-slab electric heating.

However, you should look at your household preferences carefully, to make sure you really can change how you use electricity at peak times.

If you would like a smart meter, or are unsure if you already have one, talk to your electricity retailer.

There are plenty of other ideas on Your Energy Savings you can take to reduce your energy bills.