Definition: A smart metering system is a network of smart meters, communication
networks, and data management systems that allow for two-way communication between
customers and utilities. Smart meters are electronic devices that measure energy consumption
and can transmit and receive data. A smart meter provides detailed information on
consumption in order to reduce electricity bills and also increase knowledge about the status
of the electricity grid, which improves its performance and the quality of service for
customers.
Characteristics of smart meters
The meter traditionally used to measure energy consumption had functions that were
essentially measuring and storing the total accumulated value. The shift of grids towards
smart grids involves, among other things, replacing traditional meters with smart meters,
making it easier for customers to enjoy improved features and new services.
Smart meters incorporate a power-limiting circuit breaker, which means it does not have to
be installed inside the customer's own electrical panel, improving the response and capacity
to act. They also have a telecommunications interface for remote communication between the
central systems and the meter, allowing remote reading and operations, such as sending new
tariff tables, modifying the parameters associated with the contracts and the configuration of
the meter itself, as well as the operation of the internal switch.
The above-mentioned significant technological developments enable smart meters to
perform new functions:
1. Multiple energy registers and multiple tariffs
Smart meters store energy consumption on an hourly or even more detailed basis. This makes
it possible to bill the consumption in each time period at a different tariff, so each customer
can choose the option that allows them to minimise their bill according to their consumption
profile. It is also a useful tool to encourage responsible consumption.
2. Simultaneous management of several contracts
Distributed Energy Resources (DER) are an important tool in the fight against climate change
and smart meters are key to facilitating the integration of renewable energy, especially
photovoltaic power from small installations in households and other small consumers.
Customers can, thus, enjoy the advantages of generating their own energy (photovoltaic self-
consumption) while retaining the advantages of remaining connected to the electricity
distribution grid. This integration, in part thanks to smart meters, enables the simultaneous
management of energy purchase and sale contracts.
3. Multiple records of supply quality events
In addition to storing energy consumption measurements, smart meters allow real time
information to be collected on the status of the electricity grid. Including making it possible
to identify supply interruptions, inefficient voltages and incorrect connections. Thus
significantly improving the quality of supply and the time it takes to locate and replace faults,
again benefiting customers.
All the aforementioned functionalities are possible thanks to another of the technological
advances incorporated in smart meters. This is none other than the possibility of sending
readings automatically through the telecommunications network, so they are available for
central services to process automatically and for customers to view them on different devices.
In addition, Iberdrola participated in creating the international standard that defines the
telecommunications technology used by smart meters, being a world pioneer in its
deployment. This open standard allows implementation by a variety of suppliers, achieving
full end-to-end interoperability.
In short, the characteristics of smart meters make it possible to provide a superior service to
customers, improving the quality of supply and offering a series of new features so that the
customer is able to control and optimise their electricity consumption.
Advantages of Smart metering systems can:
Improve customer service: Smart meters can help utilities improve the quality and
performance of service for customers.
Help customers manage consumption: Customers can see how their consumption affects
their bills and make changes to reduce consumption.
Reduce billing errors: Smart meters can help reduce billing errors that can occur when
meters are read manually.
Increase distributed electricity generation: Smart meters can help increase the uptake of
distributed electricity generation, which can help reduce the carbon footprint.