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A smart meter is a digital electrical-power meter equipped with a function for two-way communication with an electrical-power provider. Fitted with a microcomputer, it can handle various types of remote-control functions.
It not only lowers human costs by automating the metering of power consumption but also enables operations like switching on and shutting off electricity to individual households remotely from the provider's side and allows a dynamic understanding of power consumption across each time slot. It is an indispensable device for "smart grids"—namely, a scheme aiming to optimize power utilization.