Security
Smart meters expose the power grid to cyberattacks that could lead to power outages, both by cutting off people's electricity[59] and by overloading the grid.[60] However many cybersecurity experts state that smart meters of the UK and Germany have relatively high cybersecurity and that any such attack there would thus require extraordinarily high efforts or financial resources.[61][62][63] The EU Cybersecurity Act took effect in June 2019, which includes Directive on Security Network and Information Systems establishing notification and security requirements for operators of essential services.[64]
Through the Smartgrid Cybersecurity Committee, the U.S. Department of Energy published cybersecurity guidelines for grid operators in 2010 and updated them in 2014. The guidelines "...present an analytical framework that organizations can use to develop effective cybersecurity strategies..."[65]
Implementing security protocols that protect these devices from malicious attacks has been problematic, due to their limited computational resources and long operational life.[66]
The current version of IEC 62056 includes the possibility to encrypt, authenticate, or sign the meter data.
One proposed smart meter data verification method involves analyzing the network traffic in real-time to detect anomalies using an Intrusion Detection System (IDS). By identifying exploits as they are being leveraged by attackers, an IDS mitigates the suppliers' risks of energy theft by consumers and denial-of-service attacks by hackers.[67] Energy utilities must choose between a centralized IDS, embedded IDS, or dedicated IDS depending on the individual needs of the utility. Researchers have found that for a typical advanced metering infrastructure, the centralized IDS architecture is superior in terms of cost efficiency and security gains.[66]
In the United Kingdom, the Data Communication Company, which transports the commands from the supplier to the smart meter, performs an additional anomaly check on commands issued (and signed) by the energy supplier.
As Smart Meter devices are Intelligent Measurement Devices which periodically record the measured values and send the data encrypted to the Service Provider, therefore in Switzerland these devices need to be evaluated by an evaluation Laboratory, and need to be certified by METAS from 01.01.2020 according to Prüfmethodologie (Test Methodology for Execution of Data Security Evaluation of Swiss Smart Metering Components).
According to a report published by Brian Krebs, in 2009 a Puerto Rico electricity supplier asked the FBI to investigate large-scale thefts of electricity related to its smart meters. The FBI found that former employees of the power company and the company that made the meters were being paid by consumers to reprogram the devices to show incorrect results, as well as teaching people how to do it themselves.[68] Several hacking tools that allow security researchers and penetration testers verify the security of electric utility smart meters have been released so far.[69]
Health
Most health concerns about the meters arise from the pulsed radiofrequency (RF) radiation emitted by wireless smart meters.[70]
Members of the California State Assembly asked the California Council on Science and Technology (CCST) to study the issue of potential health impacts from smart meters, in particular whether current FCC standards are protective of public health.[71] The CCST report in April 2011 found no health impacts, based both on lack of scientific evidence of harmful effects from radio frequency (RF) waves and that the RF exposure of people in their homes to smart meters is likely to be minuscule compared to RF exposure to cell phones and microwave ovens.[72]
Daniel Hirsch, retired director of the Program on Environmental and Nuclear Policy at UC Santa Cruz, criticized the CCST report on the grounds that it did not consider studies that suggest the potential for non-thermal health effects such as latent cancers from RF exposure. Hirsch also stated that the CCST report failed to correct errors in its comparison to cell phones and microwave ovens and that, when these errors are corrected, smart meters "may produce cumulative whole-body exposures far higher than that of cell phones or microwave ovens."[73]
Safety
Issues surrounding smart meters causing fires have been reported, particularly involving the manufacturer Sensus. In 2012. PECO Energy Company replaced the Sensus meters it had deployed in the Philadelphia, US region after reports that a number of the units had overheated and caused fires. In July 2014, SaskPower, the province-run utility company of the Canadian province of Saskatchewan, halted its roll-out of Sensus meters after similar, isolated incidents were discovered. Shortly afterward, Portland General Electric announced that it would replace 70,000 smart meters that had been deployed in the state of Oregon after similar reports. The company noted that it had been aware of the issues since at least 2013, and they were limited to specific models it had installed between 2010 and 2012.[76] On July 30, 2014, after a total of eight recent fire incidents involving the meters, SaskPower was ordered by the Government of Saskatchewan to immediately end its smart meter program, and remove the 105,000 smart meters it had installed.[77]
Privacy concerns
One technical reason for privacy concerns is that these meters send detailed information about how much electricity is being used each time. More frequent reports provide more detailed information. Infrequent reports may be of little benefit for the provider, as it doesn't allow as good demand management in the response of changing needs for electricity. On the other hand, widespread reports would allow the utility company to infer behavioral patterns for the occupants of a house, such as when the members of the household are probably asleep or absent.[78] Furthermore, the fine-grained information collected by smart meters raises growing concerns of privacy invasion due to personal behavior exposure (private activity, daily routine, etc.).[21] Current trends are to increase the frequency of reports. A solution that benefits both provider and user privacy would be to adapt the interval dynamically.[79] Another solution involves energy storage installed at the household used to reshape the energy consumption profile.[80][81]
Opt-out options
Reviews of smart meter programs, moratoriums, delays, and "opt-out" programs are some responses to the concerns of customers and government officials. In response to residents who did not want a smart meter, in June 2012 a utility in Hawaii changed its smart meter program to "opt out".[94] The utility said that once the smart grid installation project is nearing completion, KIUC may convert the deferral policy to an opt-out policy or program and may charge a fee to those members to cover the costs of servicing the traditional meters. Any fee would require approval from the Hawaii Public Utilities Commission.
After receiving numerous complaints about health, hacking, and privacy concerns with the wireless digital devices, the Public Utility Commission of the US state of Maine voted to allow customers to opt-out of the meter change at the cost of $12 a month.[95] In Connecticut, another US state to consider smart metering, regulators declined a request by the state's largest utility, Connecticut Light & Power, to install 1.2 million of the devices, arguing that the potential savings in electric bills do not justify the cost. CL&P already offers its customers time-based rates. The state's Attorney General George Jepsen was quoted as saying the proposal would cause customers to spend upwards of $500 million on meters and get few benefits in return, a claim that Connecticut Light & Power disputed.[96]
Abuse of dynamic pricing
Smart meters allow dynamic pricing; it has been pointed out that, while this allows prices to be reduced at times of low demand, it can also be used to increase prices at peak times if all consumers have smart meters.[97] Additionally smart meters allow energy suppliers to switch customers to expensive prepay tariffs instantly in case of difficulties paying. In the UK during a period of very high energy prices from 2022, companies were remotely switching smart meters from a credit tariff to an expensive prepay tariff which disconnects supplies unless credit has been purchased. While regulations do not permit this without appropriate precautions to help those in financial difficulties and to protect the vulnerable, the rules were often flouted.[98] (Prepaid tariffs could also be levied without smart meters, but this required a dedicated prepay meter to be installed.) In 2022, 3.2 million people were left without power at some point after running out of prepay credit.[99]
Limited benefits
There are questions about whether electricity is or should be primarily a "when you need it" service where the inconvenience/cost-benefit ratio of time-shifting of loads is poor. In the Chicago area, Commonwealth Edison ran a test installing smart meters on 8,000 randomly selected households together with variable rates and rebates to encourage cutting back during peak usage. In Crain's Chicago Business article "Smart grid test underwhelms. In the pilot, few power down to save money.", it was reported that fewer than 9% exhibited any amount of peak usage reduction and that the overall amount of reduction was "statistically insignificant". This was from a report by the Electric Power Research Institute, a utility industry think tank who conducted the study and prepared the report. Susan Satter, senior assistant Illinois attorney general for public utilities said "It's devastating to their plan...The report shows zero statistically different result compared to business as usual."[100]
By 2016, the 7 million smart meters in Texas had not persuaded many people to check their energy data as the process was too complicated.[101]
A report from a parliamentary group in the UK suggests people who have smart meters installed are expected to save an average of £11 annually on their energy bills, much less than originally hoped.[102] The 2016 cost-benefit analysis was updated in 2019 and estimated a similar average saving.
Erratic demand
Smart meters can allow real-time pricing, and in theory this could help smooth power consumption as consumers adjust their demand in response to price changes. However, modelling by researchers at the University of Bremen suggests that in certain circumstances, "power demand fluctuations are not dampened but amplified instead."[105]
In 2013, Take Back Your Power, an independent Canadian documentary directed by Josh del Sol was released describing "dirty electricity" and the aforementioned issues with smart meters.[106] The film explores the various contexts of the health, legal, and economic concerns. It features narration from the mayor of Peterborough, Ontario, Daryl Bennett, as well as American researcher De-Kun Li, journalist Blake Levitt,[107] and Dr. Sam Milham. It won a Leo Award for best feature-length documentary and the Annual Humanitarian Award from Indie Fest the following year.
UK roll-out criticism
In a 2011 submission to the Public Accounts Committee, Ross Anderson wrote that Ofgem was "making all the classic mistakes which have been known for years to lead to public-sector IT project failures" and that the "most critical part of the project—how smart meters will talk to domestic appliances to facilitate demand response—is essentially ignored."[108]
Citizens Advice said in August 2018 that 80% of people with smart meters were happy with them. Still, it had 3,000 calls in 2017 about problems. These related to first-generation smart meters losing their functionality, aggressive sales practices, and still having to send smart meter readings.[109]
Ross Anderson of the Foundation for Information Policy Research has criticised the UK's program on the grounds that it is unlikely to lower energy consumption, is rushed and expensive, and does not promote metering competition. Anderson writes, "the proposed architecture ensures continued dominance of metering by energy industry incumbents whose financial interests are in selling more energy rather than less," and urged ministers "to kill the project and instead promote competition in domestic energy metering, as the Germans do – and as the UK already has in industrial metering. Every consumer should have the right to appoint the meter operator of their choice."[110]
