Smart meters are a part of a new government initiative to reduce energy consumption across the UK. A smart meter is an electronic version of your current electricity meter. The bonus of smart meters is that they replace the analogue meter, which has to be read manually and can only be checked periodically. With a digital monitor, information can be sent straight to your utility supplier all the time.

One of the major problems for utility companies is that people tend to want to use electricity all at the same time. Demand comes in spikes which the utility companies have to deal with. The way that demand is satisfied is that quick-fire power plants, which can deliver energy swiftly but inefficiently, are fired up to produce excess energy to cover the extra demand.

Advert breaks during prime time TV programmes are an example of when utility companies need to produce extra electricity, in order to deal with the surge in demand when consumers all switch on their kettles for tea during the same five-minute break. The electricity required during these peak periods is expensive to produce, whereas power generators rarely run at full capacity during off-peak periods.

In an ideal world, national energy consumption would not come in great peaks and troughs but would level out to a predictable constant with relatively minor spikes. The only way to achieve this realignment of energy consumption is to encourage consumers to use their energy at different times of the day.

<a rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/1008742');" href="/links/?u=http://www.uswitch.com/gas-electricity/smart-meters-explained/">Smart meters</a> can help to regulate your daily consumption of energy. The information provided by the energy monitor will tell you when you are using your electricity and how much you are using at peak times. Armed with that information, you can change your daily habits in order to adjust your consumption. For example, where possible appliances such as dishwashers and washing machines should be left until after 10pm at night before switching them on to do a load.

Knowledge is power and with the knowledge gained from smart meters, users should become more conscious of the energy they are using throughout the day. By changing some of your consumption habits, you can save not only money but also the planet.