first:utility, a company which has provided telephone services in the UK for many years, has recently expanded into the gas and electricity market with an innovative solution to an age-old problem - estimated, inaccurate billing.

It is not widely known, but your energy supplier is not required to come by more than once every two years to read your gas or electricity meters. So unless you are a diligent customer and regularly provide your own meter readings, you probably know firsthand how badly wrong a supplier can get it when setting direct debit amounts or generating statements.

But enough of that - first:utility have bravely thrown their hat in the ring, and are promising customers frustrated with the slow pace of change in the energy industry, a new 'smart' energy meter, free of charge. This new meter works by communicating directly with first:utility using GSM (mobile phone) technology. Your energy usage is periodically fed back to first:utility, allowing the company to always use real usage data when generating bills and setting direct debits.

Even better, first:utility will let customer analyse their energy usage online, or by using a handheld remote device that comes with the meter. Experts believe that knowing their energy usage profile can help users take easy steps to reduce consumption by up to 10%.

So what's the catch? You do need to stay with first:utilita for 2 years, or else there is a GBP100 exit penalty, but given that the meter installation is currently free that's fair enough. After that you can switch and we have been told that no matter where you take your energy supply, the new meter will still work, albeit without the smart function.

first:utility are based in Leamington Spa, and their offer is available throughout England, Scotland and Wales through this service.