Smart metering and social tariffs: smart data for fairer energy

Current subsidy models have obvious limitations: generic access criteria, poor flexibility and little adherence to actual consumption. In this context, the introduction of smart meters can radically transform the way social tariffs are designed and applied, enabling a more equitable, dynamic and targeted approach.

How smart meters are changing the rules of the game

As we have already discussed several times, traditional meters simply measure overall consumption on a monthly or bi-monthly basis, whereas smart meters collect detailed consumption data in near real time, with hourly or even, in the case of electricity, quarter-hourly granularity. This capability paves the way for much more sophisticated use of data.

Firstly, they ensure continuous monitoring, as utilities can detect consumption patterns, identify abnormal peaks and intervene with targeted support policies. Secondly, they enable access to flexible tariffs, because the data allows tariffs to be adjusted according to time of day and season, helping households to save money at times of greatest vulnerability (e.g. during cold spells or heat waves). Finally, they offer transparency, as consumers can access detailed information about their usage, enabling them to better manage their household budget.

Despite the benefits, there are significant challenges that utilities must address in order to make this virtuous model the standard. First and foremost, there must be a strong focus on privacy and security. Granular data can reveal a lot about a family's daily habits. It is essential to protect this information with robust cybersecurity measures and transparent governance rules. It is also crucial to address the digital divide, as the households that would benefit most from smart social tariffs are often the least digitised. Technology must therefore be accompanied by training and accessible tools. Finally, the regulatory framework needs to be refined, as many countries lack clear rules allowing for the application of flexible data-based tariffs. Coordinated efforts are needed between utilities, regulatory authorities and consumer associations.

Real cases and experiments

The use of smart metering to enable social tariffs and energy inclusion strategies is still evolving, but there are already interesting initiatives in several countries. Here are some examples that demonstrate how technology can be used to promote equity.

• United Kingdom: Time-of-Use Pricing is among the most developed in Europe. Some suppliers have experimented with dynamic pricing plans that offer lower prices during off-peak hours. For vulnerable households, this model allows them to save money by shifting some consumption (e.g. washing machines or device charging) to cheaper energy time slots. At the same time, “warm home discount” programmes have been launched, integrated with smart meters, combining automatic discounts on bills and consumption monitoring to reduce waste.
  
• Sub-Saharan Africa: In developing countries, smart meters are revolutionising access to electricity. In many rural areas of sub-Saharan Africa, start-ups are providing domestic photovoltaic systems equipped with prepaid smart meters. Households can purchase energy in small quantities, paying only when they can afford it. This model ensures continuity of supply, prevents arrears and gives households immediate control over their budget. It is an example of how technology can overcome barriers to energy inclusion even without centralised networks.
• Italy: In Italy, smart meters are widespread (thanks to the mandatory second-generation roll-out initiated by ARERA). However, the Social Electricity Bonus is calculated based on income indicators (ISEE) and standardised consumption. Some suppliers are testing pilot projects to integrate real consumption data and provide personalised reports or energy efficiency advice. The real challenge remains linking this data to subsidies in an automatic and dynamic way.
  

Future prospects

Looking ahead to the coming years, it is likely that many of these experiments will become standard models. Climate challenges, rising energy costs and the transition to more decentralised networks will make it crucial to exploit digitalisation not only for technical efficiency, but also to ensure fairness and accessibility. Looking ahead, technological evolution opens up interesting scenarios:

• smart contracts and blockchain to automate the management of subsidies, reducing bureaucracy and fraud;
• integration with smart homes to optimise appliances, heating and electric vehicle charging in real time;
• energy communities: cooperative models of energy exchange between households with smart meters.

Smart metering is not just a technical tool for utilities, but can become a powerful ally for energy justice. Fully exploiting the potential of this data means rethinking social tariffs in a dynamic, inclusive and sustainable way.

However, an integrated vision is needed: technological innovation, a solid regulatory framework, data protection and support for the most vulnerable users. Only in this way can smart meters truly contribute to reducing energy poverty and building a more equitable future for all.