Every property – be it commercial or residential – has an electrical meter somewhere on-site.
For most people, that’s where their knowledge of how electrical meters work comes to an end.
What you might not be aware of is that it’s the electrical meter that electricity companies use to calculate your quarterly power bill – if you’ve ever received your power bill and wondered where they get those numbers from, now you know!
Make no mistake, your power meter plays a crucial role – that’s why it’s so important that you know what it does, and how it works, as well as what you need to do if something goes wrong with it.

Our commercial electrician company explains how electrical meters work
Before we explain how electrical meters work however, we need to explain how electricity usage is measured.
And to do that, we need to start by explaining some key terminology – in particular, kilowatt hours (kWh for short).
But first, we need to start by defining kilowatts (kW), which is equal to 1,000 watts or 3.6 megajoules. Think of kW as a measure of raw power at any specific moment in time.
By contrast, kilowatt hours are a measure of energy usage.
Take note that they’re called kilowatt hours, not kilowatts-per-hour!
While they sound similar, they are not the same thing – rather, kWh is a measure of how much energy you’d use if you ran a 1kW appliance for an hour.
It’s this unit that’s become our standard measure of electricity usage.
There are two types of meter, both of which work differently:
- Analogue
- Digital
While both do the same job, the devil is in the details.
How do analogue meters measure electricity?
Analogue meters use mechanical systems, including two conductor coils that react to currents, one by currents going across the conductor (measured in amps) and by the voltage going across the conductor (measured in – what else? – volts).
Together, these coils turn a thin aluminium disc and gears, all of which drive the meter itself at a rate that corresponds with certain kWh usage.
Essentially, analogue meters contain physical parts that rotate at different rates depending on the amount of power you’re using in your business. Higher usage means faster rotation, and the dials going up quicker.
How do digital meters measure electricity?
By contrast, digital electrical meters use sensors that detect voltage and amperage directly and use those figures to calculate your property’s kWh usage.
This makes them more accurate than their analogue counterparts.
By measuring the numbers directly, digital meters are able to avoid the issues with over and under-recording that come with analogue meters. Not only that, but they also provide an exact reading as well!
Making sense of it all: how to read your electric meter
Digital meters are pretty straightforward – whatever the number displays is your electricity usage expressed in kilowatt hours.
Unfortunately, reading an analogue one is a bit harder!
Instead of having a single easy-to-read display, many analogue meters instead use a series of dials like the speedometer in a car, with one for every 10, 100, 1000, and 10,000 hWh used.
Each one runs from 1-9, making finding your power usage a matter of checking the number on each one and assigning the corresponding digit until you have your final kWh number.
It’s a little bit more complicated than just seeing how much power you used directly – thankfully however, it’s still quite doable!
How are digital and analogue meters read?
You know the people from the power company that turn up once a month and take a look around your front garden before leaving?
Turns out they’re not just there to admire your box hedges – they’re there to take a look at your electrical meter and report your electricity usage to your power company.
Both analogue and (most) digital meters need someone to manually note down the reading. However, that may not be the case for much longer.
Many power companies have started offering their clients smart meters, a new type of meter that doesn’t even feature a readout at all.
Instead, these meters automatically take readings every hour (some even more frequently) and transmit them remotely to your electricity company, eliminating the need to have someone manually check.
They also save you the effort of going outside – since numbers are transmitted automatically, you can check your power usage by going to your electricity provider’s website and view your usage there.

Electrical meter problems
You pay good money for your electricity – if you notice any unexpected spikes in power usage at your business, and can’t chalk it up to changes in your operations, it may be time to get in touch with a commercial electrical service and book a meter inspection.
While these devices are exceptionally durable and long-lived, they aren’t immune from issues, especially if the protective casing that shelters them from the elements wears out.
And when this happens, you’ll need to get in touch with your electricity provider, who’s obliged to test electrical meters on-site and perform a basic check.
If it turns out that you are indeed saddled with a faulty meter, they’ll also repair or replace it for you, saving you from paying more than you need to on your power bill.
Just be sure to ask them whether or not replacements are covered by them first, as this can vary from company to company!
And if it turns out that it isn’t a meter problem, you might have to look elsewhere for problems…
Commercial electrical services for all sorts of businesses
Our commercial electrical contractors offer comprehensive services
If your meter comes back with figures that are consistently higher than your typical power usage (and you’ve definitively ruled-out any meter-related issues), it might be time to call a commercial electrician company to find out what the issue is.
Powermaster Electrical offers a wide range of commercial electrical services to properties all over Melbourne, including providing electrical repairs and maintenance for businesses of all shapes and sizes.
If it isn’t a meter problem, you can trust our team of commercial electrician in Hampton to get to the bottom of the issue and fix whatever’s causing your power usage to spike.
And it doesn’t end there, either – our commercial electrician in Cheltenham provide other electrical solutions too:
Whether you’re an established business or getting set up for the first time, we’re your one-stop shop for all your electrical needs.
Find out how we can help you by getting in touch on 1300 410 141 or click here to get in touch online!