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DIGITAL INFRASTRUCTURE
How does a smart meter work?
A smart meter is a device connected to the internet that records residents energy consumption and sends that information to various stakeholders. This information is used for various purposes.
Simplified Illustration of the Smart Meter Infrastructure
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All about data...
The smart meter records 1. how much energy is used 2. the price of energy and 3. the time the energy was used. This data is transferred real time to the energy consumer (via the digital display or other online platform), the energy supplier, and other stakeholders like the UK government, tech companies, etc.
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Previously, suppliers "assumed customer profiles" (i.e. a "domestic customer's energy consumption peaks in the morning before work and the evenings after work"); however, with smart meter data, suppliers understand exactly how much energy is being used during certain times of day or the year. With this information, they can offer different energy packages to consumers like dynamic pricing, so instead of paying a fix price for energy, consumers can pay a variable price dependent on supply and demand.
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Other governmental and nongovernmental organizations, analyze smart meter data to understand consumers energy use as well. In addition to other purposes, they use this information to understand and provide advice to consumers on how to reduce energy consumption and save cost.
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Andrew (GMO)
"We turn smart meter data into advice "
Alex (Tech)
"Having data is instrumental"
Phil (Supplier)
"Smart meters allow us to do away with assumptions, we know what energy is being used when"
SUPPLIER -Â CONSUMER RELATIONSHIP
Why and how to choose an energy provider?
COST
For many people, energy is viewed as a "commodity" and accordingly, some consumers choose the cheapest supplier. Victoria, a semi-retired homeowner in North London is just "looking for the cheapest good deal from a big energy provider." While she is "in favor of preserving the environment" and aware of energy politics, she doesn't let this influence which supplier she chooses.
GREEN ENERGY
For others, having an energy supplier that only uses renewable energy sources (e.g. wind, solar) is an absolute must. June, a member a local environmental activist group, "has been with green energy a long time" and "talks to people a lot about switching green provider." Her group has a blog specifically recommends which provider to choose based on carbon emissions, fuel mix, cost, ethical rating and switch score [see below].
SERVICE
While cost and carbon footprint were the main factors in choosing a supplier, lack of "customer service and reliability" cause people to switch. At one point, Victoria had a green supplier herself, "but there were so many problems, she switched to one of the Big 5." She has had "loads of different suppliers [as] it is extremely easy to switch." As he contract was expiring, she was going to use uswitch.com to see if there was a better deal out there.
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