Electricity: The era of smart meters begins – What consumers stand to gain

Special current tariffs for heating, the ability for consumers to pre-purchase energy at a discount and automatic fault management are some of the new features that smart meters for electricity that are being gradually installed on the grid will provide consumers.

According to the cost-benefit study for the installation of smart meters conducted by DEDDIE (Hellenic Electricity Distribution Network Operator), these devices enable differentiated billing services, such as for heating or electric vehicles. In addition to multi-zone tariffs (i.e., different charges throughout the day, with higher rates during peak hours and lower rates during off-peak hours), smart meters can simultaneously apply different tariffs depending on usage, provided the charging or heating device is connected to a separate supply line.

The heating-related service of the “smart boiler” offers an innovative solution: during periods of low demand and low electricity prices (which can even be zero or negative, as observed in some EU markets), the smart meter can automatically activate the boiler to heat water at minimal or even negative cost. In extreme cases, consumers could be paid by the market to consume energy that would otherwise be discarded from the grid, while reducing their electricity use for water heating during peak demand hours.

Prepaid Energy Purchasing

A second feature is the option to pre-purchase energy. Consumers could, for instance, buy 1,000 kWh in advance at a discounted rate from their provider, similar to prepaid mobile plans. For this to become feasible in Greece, commercial programs of this type, already implemented in many European countries, would need to be developed.

Enhanced Fault Detection and Recovery

In the event of a power outage, the smart meter would send a “last gasp” signal to the grid, automatically notifying the network operator of the fault. If multiple signals are received from the same area, the operator will immediately know if the issue is localized or widespread, as well as the exact extent of the outage, enabling faster restoration. When power is restored, the meter sends a “first breath” signal to confirm that the issue has been resolved.

Additional Benefits of Smart Meters

These features complement the capabilities of smart meters, which help identify and reduce electricity theft while supporting multi-zone tariffs. These tariffs encourage consumers to limit energy use during peak hours when electricity is more expensive, leading to energy and cost savings. For example, in the evening hours when solar production is absent and demand for heating or air conditioning is high, shifting consumption to off-peak hours can be financially beneficial.

Implementation Timeline and Economic Impact

The installation of smart meters is already underway, with completion expected by 2030. A tender is currently in progress for the procurement of 7.1 million meters to replace all conventional low-voltage consumption meters, at a budget of €1.16 billion. Despite the significant investment required, DEDDIE estimates that consumers will benefit from total savings of €1.1–1.6 billion. These savings will primarily come from reductions in electricity theft, transformer theft, operational costs (e.g., remote fault detection, disconnections, and reconnections), and the shift of electricity use to off-peak hours.

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