What is the Difference Between AMR and Smart Metering?

Recent years have brought significant developments in the technology used for energy and water billing. New meter types have been introduced, which have changed how we are charged for our use. This is important. Residential and business users should be billed for the energy and water they use, and properly functioning metering technology has other uses, such as effectively acting as an early warning system for leaks or other faults and problems. There are now two types of meter for measuring energy and water use, AMR and Smart meters, but what are the differences and which is best for your business? 

What is an AMR Meter?

AMR stands for Automated Meter Reading. An AMR meter creates a connection channel between a business customer and its energy supplier and provides monthly data to them. With an AMR meter, the communication only goes in one direction to the supplier, who will receive meter reads once per month, so there is no need for manual meter reads. This ensures accurate billing and allows customers to analyse their energy usage data.

AMR meters carry significant benefits. They ensure precise usage tracking and accurate readings, while utility workers no longer need to visit each meter location to take them physically. Instead, they can track consumer usage from their vehicles. Lower labour costs and less fieldwork benefit the suppliers, and when outages occur, AMR helps utilities quickly identify affected areas and dispatch repair staff. But of course, all this comes at a cost. Implementing AMR involves an initial investment. 

What is a Smart Meter?

Smart Meters build upon the innovation of AMR meters by feeding communication in two directions, meaning you have a far greater array of data about your energy use. 

They are commonly installed by a supplier to replace existing energy meters and automatically update the supplier with regular readings. They work out how much energy is used, the cost over time and the cost per hour, but on top of this, they can also send rich data that can be used so that you can better understand your business energy usage. They can also provide automated alerts and status updates. They’re capable of sending meter readings monthly, daily or even half-hourly, so you can be billed on actual rather than estimated reads.

AMR Meter vs Smart Meter

Utility meters come in many different shapes and sizes, but broadly speaking, there are three types of AMR meter and two types of Smart Meter. 

The three types of AMR meter are: 

• Advanced meters: a remote reading device connected to the meter

• Data loggers: remote reading equipment provided by transporters on larger sites

• Gas-embedded meters: where the remote reading device is integral to the meter

 Smart Meters, by comparison, are based on one of two technologies: 

• SMETS1: Which communicate with your supplier through a 3G mobile network

• SMETS2: Which communicate with your supplier through a purpose-built network

Most Smart meters installed before around 2018 will be SMETS1 meters, while most installed after this date will be SMETS2 meters. If you have an SMETS1 meter and switch suppliers, it will continue recording your energy use but may no longer communicate information remotely. It’s best to check whether you need a new meter when changing suppliers. 

Since May 2018, residential and SME users have been unable to install AMR meters, which are now only available for large industrial users. Smart meters can regularly provide accurate, targeted billing information, such as half-hourly and other granular details on usage. However, they are also more expensive, so AMR meters remain preferable for larger businesses. 

Are Smart Meter Readings Accurate?

Smart meters are as accurate as traditional meters. By law, all smart meters have to be approved by and certified by the Office of Product Safety & Standards to prove their accuracy. If you get a smart meter, it will be as accurate as the one it replaces. If you believe that there's a fault with your smart meter, you can report it to your energy supplier in the same way you would with a traditional meter.

If you’re concerned about receiving higher bills following a smart meter installation, it could be because you previously received low estimates from your energy supplier. Your smart meter is now tracking your energy use accurately. For issues with smart meters, if you have spoken to your energy supplier about your meter readings but are not satisfied, you can request an independent meter test.

The test is free to begin with. But you may have to pay your energy supplier to organise it if your meter is found to be working correctly. You can find out more from the government’s guidance on electricity meter accuracy testing and gas meter accuracy testing.

If you’re concerned your in-home display isn’t showing the right information, for example, if you think your smart meter is showing the wrong tariff, you can first check the following:

• Ensure the tariff information on your in-home display matches the tariff on your bill or new contract. This includes the tariff name, unit rate and standing charge.

• Check that the meter readings on your in-home display are similar to the ones on your meters.

If both are showing correctly on the meter display, it will present the correct energy usage data for them. If the meter readings don’t look similar or your in-home display shows the wrong tariff, speak to your energy supplier to resolve this.

But if you’ve just installed your smart meter, the display can take a little while to provide the correct information. The readings on it usually take a bit longer to update than the ones on your meters—this delay is normal. A correctly installed Smart Meter should provide data as accurate as an AMR meter, only more regularly and in two directions simultaneously. 

There remains a misconception that smart meters pose a health risk, but no evidence supports this assertion. UK and EU product safety legislation covers the smart meters used today. A trusted authority Public Health England study concluded that exposure to the radio waves produced by smart meters is likely much lower than that from other everyday devices such as mobile phones and Wi-Fi equipment.

Do Smart Meters Send Readings Automatically?

Yes, your smart meter should automatically send readings back to the supplier, provided that your meter has been correctly installed. The big difference between AMR and Smart Meters is the level of detail and regularity with which they work. 

In the case of electricity meters, for example, AMR meters only provide kWh information and possible peak kW demand for any given month. Smart meters send much more information, including cumulative kWh usage, daily usage, peak kW demand, voltage information, outage information, time of use kWh and peak kW readings.

The automatic transfer of granular detail carries significant benefits. As a business leader, you’ll be keen to optimise your processes to maximise your savings, and smart meters give you the information you need and the ability to track any changes you make accurately.

Are All Smart Meters the Same?

No, they’re not! Older smart meters use different technologies to transfer data between your business and your supplier, while AMR meters only transfer data from your business to the supplier in one direction. Newer smart meters send data to your business and use more reliable technology.

Future developments in technology will allow for even greater control. Smart meters will become even more connected, allowing seamless integration with other smart devices in your home. They will incorporate artificial intelligence (AI) in the future, making them even more intelligent and efficient. 

They’ll also be able to detect potential issues before they become major problems, allowing for more efficient and cost-effective maintenance. This means that energy suppliers can address issues more quickly and prevent customer downtime. At the same time, providers can use this data to provide even more personalised and customised services. These could include energy-saving tips and recommendations tailored specifically to your energy usage habits.

With the growing popularity of renewable energy sources, smart meters will become even more important. Smart meters can monitor the production of renewable energy sources, such as solar panels, and adjust energy usage accordingly.

Costs Involved

Replacing an older meter with a newer one won’t save your business money in and of itself, but the data they provide should give you the control to cut your bills through smarter energy usage.

You do not have to pay to install a smart meter at your business, so there is no reason not to benefit from this. Simply contact your energy supplier and enquire. Plus, you can reduce your monthly energy expenses with a business smart meter.

One of the primary long-term benefits is the potential for substantial cost savings on energy bills. By implementing the latest meter technology, businesses can monitor and control their energy usage more effectively, identifying areas where wastage occurs and taking proactive measures to address them. This leads to reduced energy consumption, lowering utility costs over time.

Implementation and Infrastructure

Installation is usually fairly straightforward. It typically takes between 60 and 90 minutes to install an SMETS2 meter, with the power turned off for about 30 minutes. 

Some customers opt for AMR instead of smart, even if they’re eligible for both. If your business already has AMR meters or half-hourly metering at other premises, it may be more convenient to have consistency by opting for AMR again. This allows you to have your portfolio of meters supported by the same meter and data provider, including your AMR and Half-hourly settlement meters and sub-meters. 

You'll need to talk to your energy supplier about your eligibility. If you rent your business space and pay your own energy bills, then you can ask your supplier to install a smart meter, or they may contact you directly to offer one. You should check with your landlord that any changes to your meter are allowed within your rental contract. It is important to remember that smart meter offerings may vary between energy suppliers, and each supplier could have different terms and conditions relating to these offerings. 

Automated Meter Reading Systems

AMR technology automatically collects consumption, diagnostic, and status data from gas, electricity, or water meters. AMR systems gather usage data from meters. The collected data travels to a central database via radio frequencies or other communication channels. Consider it a digital handshake between the meter and the utility provider. AMR ensures near real-time consumption data, not past predictions. 

Advanced electricity meters connect directly to existing electric meters, providing real-time data on electricity consumption. Walk-By AMR uses handheld devices with wands or probes. Similar AMR technologies ensure accuracy and efficiency in gas consumption tracking.

AMR hosting is a back-office solution that allows users to track their electricity, water, or gas consumption over the Internet. All data is collected in near real-time and stored in a database by data acquisition software. The user can view the data via a web application and analyse it using various online analysis tools, such as charting load profiles, analysing tariff components, and verifying their utility bill.

Meter technology has changed significantly in recent years, with significant benefits for both the customer and the energy supplier. Real-time billing is a huge advantage, but the real value for customers comes with the data that comes with them, which could allow you to more accurately monitor your energy usage and change your business practices to lower your bills. AMR meters may still be more useful to bigger industrial businesses, but for many SMEs, smart metering is both the current and future of billing. 

It may also benefit you to look at the contracts you already have. If you’re in this boat, Switchpal can help with tailored and personalised advice according to the exact circumstances. Get in touch with us today, and we can help you navigate these new ways of measuring, monitoring, and ultimately changing your energy use, which could save you money while also benefiting the environment.