Can “smart” meters get consumers to reduce the amount of electricity they use? That’s the bet that many U.S. utilities are making.
Facing soaring costs, power companies are equipping millions of homes with advanced meters that monitor energy use much more precisely than regular ones. That makes it easier for consumers to figure out when energy supplies are stretched thin — and for power companies to get consumers to cut back at those critical times.
Some utilities, for instance, are testing programs that offer customers rebates for cutting consumption when demand is high. In other tests, utilities boost rates at peak times to get customers to reduce use.
So far, the results have been encouraging. Customers who have advanced meters and financial incentives reduce their power use drastically.
Until recently, programs like these mostly were reserved for big energy users because it was expensive to equip residential customers with smart meters and other control equipment. As the market grows, though, costs are coming down. In many cases, utilities also say that advanced meters will cut operational costs, such as meter readers.
But the meter efforts are mostly still in the pilot stage.
Utilities are still learning what sorts of reductions in usage can be garnered and are afraid of moving too quickly because they realize it will take time for consumers to adjust to new pricing programs.
