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4 Unleashing the potential of the Internet of Things

3.2 Terms defined in this Recommendation

This Recommendation defines the following terms:
3.2.1 demand response: A smart metering feature that allows consumers to reduce or change
their use patterns of electricity, gas and water during peak demand usually in exchange for a
financial incentive.
3.2.2 sensor network gateway: A sensor network element that connects a sensor network to
another network with different architecture or protocols, permitting information exchange between
them. See also USN gateway.

NOTE – Sensor network gateway functionalities may include either address or protocol translation or both.
3.2.3 smart grid: An electricity network that can intelligently integrate the actions of all users
connected to it – generators, consumers and those that do both – in order to efficiently deliver
sustainable, economic and secure electricity supplies.

3.2.4 smart meter: A device in a user's premises for monitoring and controlling electrical power,
gas and water usage of home appliances based on demand response information from home
appliances.

3.2.5 smart metering: An operation to provide information to consumers and smart metering
operators about energy consumption. The information includes how much energy the consumers are
using or generating and how much it costs.

3.2.6 smart metering gateway: See USN gateway.
3.2.7 utility: An entity providing services such electricity, gas, water and heating to the general
public and/or to industrial and commercial entities.

4 Abbreviations and acronyms
This Recommendation uses the following abbreviations and acronyms:

USN Ubiquitous Sensor Network

5 Conventions
None.

6 Overview of smart metering

Smart meters are utility meters, for example electricity, gas, water and other meters, which may
bring about the end of estimated bills and meter readings, and provide customers and energy
distributors and suppliers with accurate information on the amount of a utility that is being used.

Smart metering provides:
– customers with the information they require to become energy savvy and make smarter
decisions about their energy usage;
– energy suppliers with the means to better understand and service their customers;
– distributors with an effective tool to better monitor and manage their networks.

In addition, smart metering enables those customers who choose to generate their own electricity
(micro-generators) to be financially rewarded for their contribution to the national grid, and for
distributors to better manage this contribution [b-ETSI TR 102 691].
Smart metering may be regarded as one of the key technologies for smart grid systems.

406 Rec. ITU-T Y.4251/F.747.1 (06/2012)