The energy regulator is considering instructing electricity providers to introduce new meters which it says will result in more accurate bills and will allow customers to better manage their own energy use.
The Commission for Energy Regulation (CER) said today it has issued a consultation paper on smart metering and that after consultation it proposes a pilot project plan, working with the ESB.
Smart meters can record not just exactly how much energy has been used, but also when it was used, thereby allowing for customers to see clearly differing energy rates at different periods of the day or week.
The CER said smart meters are sophisticated meters which can replace existing electro-mechanical meters.
It says smart metering provides a real incentive to customers to individually manager their use of electricity - using it at times when it is cheaper to produce, thereby benefiting the whole electricity system as a result.
With the new system meter readers will no longer be required to visit customers' premises, and the saving will be passed on in the form of lower network charges.
'Furthermore, all bills will be accurate as there will no longer be a need to estimate bills', the CER said.
This will mean that there will be a significant reduction in theft and losses of electricity which at present must be recovered from all customers, the regulator said.
