Which technology is commonly used to track customer energy consumption?

Smart meters are advanced devices that provide real-time data on energy consumption, allowing both utility providers and customers to monitor usage effectively. Unlike traditional analog gauges, which only display total energy usage without the ability to provide timely updates or detailed information, smart meters communicate consumption data continuously and can be read remotely. This capability enables more accurate billing and helps identify trends in energy usage.

Moreover, smart meters support features such as time-of-use pricing, where customers can shift their energy consumption to off-peak times, optimizing their energy costs. They also play a critical role in demand response programs, allowing utilities to manage energy loads during peak demand periods and improve grid reliability.

In contrast, methods like analog gauges and traditional bill estimation can lack the precision and immediacy that smart meters offer, resulting in outdated or inaccurate information for both customers and utilities. Similarly, manual data entry systems can lead to errors and delays in data processing, hindering the efficiency of tracking customer energy consumption.