Advanced vs. smart energy meters – which is better for your UK business?
Following a comprehensive review by the industry regulator, Ofgem, the UK energy sector is set for its most significant transformation since the mid-1990s, with the implementation of Market-Wide Half-Hourly Settlement (MHHS).
To access accurate data following this change, you must make an important choice about which electricity meter to use for your business:
- Advanced or AMR (Automatic Meter Reader)
- Smart or SMETs (Smart Metering Equipment Technical Standard)
In this blog, World Kinect’s UK energy experts will explain both options so you can make an informed decision about which meter system is best for you.
Why is electricity metering changing?
Currently, electricity is traded in 30-minute blocks, but it’s ‘settled’ based on estimated usage patterns from Non-Half-Hourly meters rather than on actual data. Energy settlement is the process of reconciling discrepancies between estimated customer electricity use and the amount of wholesale electricity a supplier has purchased.
MHHS aims to change this by using real Half-Hourly data for settlements for the first time. This will reduce the settlement period and provide much more accurate data and insights. The new Half-Hourly settlement system will apply to all electricity users—home and business—whether they have Half-Hourly, Non-Half-Hourly, or unmetered services. This means the market will no longer separate users based on these categories; instead, it will focus on their type of meter.
MHHS will be fully implemented between April 2025 and October 2026, so businesses need to start planning now.
While you can’t opt out of MHHS, you can opt out of your energy supplier’s smart meter roll-out and choose an advanced meter instead, which is recommended for businesses.
What are advanced meters, and how do they work?
Advanced Meter Reading (AMR) devices automatically track and send energy use information to energy companies, so no one has to check the meter by hand. This makes bills more accurate and helps businesses find ways to save energy.
There are three main types of AMR devices:
- Advanced meters – remote reading devices connected directly to the meter
- Data loggers – equipment provided for larger sites, recording and transmitting energy data
- Gas embedded meters – where the remote reading capability is integrated into the meter itself
These devices establish a reliable communication link between the business and the energy supplier, often using mobile, wireless, or powerline transmission technologies to transfer data securely and efficiently.
Key differences between advanced (AMR) and smart energy meters
Advanced (AMR) Meters
- Designed for commercial and industrial use
- Data available the next day
- High accuracy, verified by experts
- Fully compatible with all energy suppliers
- Suitable for 3-phase and CT systems
- Multiple options including 4G
- Allows remote troubleshooting and repairs
- Direct access to meter without intermediaries
- Full control through independent agents
Smart (SMETS) Meters
- Intended for household use
- Data available after two days or more
- Lower accuracy with basic validation
- Limited compatibility and may face issues
- No CT support, rare for 3-phase
- Limited to 2G
- Remote issues resolution not available
- Dependent on third-party DCC communication
- Limited control, agents needed to manage data
Benefits of advanced energy meters for businesses
- Real-time data access: AMRs have real-time monitoring, providing immediate awareness of energy consumption for both users and utility providers. This instant visibility helps you make informed decisions, promoting energy efficiency and potential cost savings.
- Better data quality: Data validation by independent meter agents means there is a robust, transparent reporting mechanism that quantifies data performance.
- Interoperability and flexibility: AMRs are the preferred choice for businesses as they can be embedded within existing infrastructure, and you are not limited to which energy supplier you can use.
- Improved cost savings and energy efficiency: Because AMR devices eliminate the need for manual meter readings, they allow businesses to monitor and manage energy consumption more efficiently. This means you only pay for the energy used, avoiding estimated bills and improving the ability to forecast costs and usage.
- Remote fault fixing and monitoring: AMRs enable remote fault detection and monitoring, so energy providers can quickly identify and resolve issues without needing to send a technician on-site. This reduces downtime and ensures a more reliable and efficient energy service for businesses.
Why smart meters might fall short for businesses
Because SMETs are aimed at domestic customers where consumption levels are lower, the data retrieval system uses mass-market communication networks to send data to energy suppliers.
As with any network, if there are issues such as signal interference, or with the meter configuration, this can cause inaccurate or delayed data, which can affect a business’s operations.
Smart meters collect a staggering amount of data including timestamps of usage, energy consumption levels and occupancy patterns so this may also raise concerns around your data privacy and security.
Boost your business efficiency: how advanced energy meters drive success
- Alignment with MHHS
They provide seamless integration with MHHS so less disruption to business operations.
- Support energy efficiency strategies and analysis of data sets
Businesses need to make time sensitive decisions on energy efficiency, carbon emissions targets and regulatory compliance, which advance energy meters can provide via independent data analysis.
- Operational stability
Advance meters offer accurate and accessible energy data and are well trusted by various business sectors.
How World Kinect can help your business make the right choice
With years of experience in providing natural gas, electricity and water management services to UK businesses, World Kinect is best placed to take you through your choices today by offering:
- Expert advice on meter selection
- Seamless installation and support
- Long-term energy optimisation
Contact us today for expert support, and to learn how we can help your business make the right decision to meet your energy cost-saving plans and carbon emission reduction goals.
