Smart meters are now in place at most homes and small businesses in Ontario, and soon the technology will allow local utility companies to monitor how much power you use and when, and charge accordingly.

The massive makeover started two years ago in Waterloo Region, despite the fact that some still say the tool is something residents don't need or want.

But measuring electricity use hour by hour is something Ontario Energy Minister Brad Duguid calls a tool of the future.

"We've replaced outdated meters with smart, modern technology that's going to be required if we're going to meet the needs of Ontario families in the future for energy needs."

Kitchener Wilmot Hydro has about 86,000 meters in place, Waterloo North Hydro has about 50,000 and Cambridge North Dumfries has installed about 46,000, all at a cost of about $30 million in Waterloo Region.

Jerry Van Ooteghem of Kitchener Wilmot Hydro says "It really is a tool for customers to use to have some control over their electricity bills."

But not everyone is convinced that the investment will pay off, because it will depend on how consumers react.

John Janzen, president of Waterloo North Hydro, says "It allows consumers to change behaviour if they are able to. And by changing behaviour, taking advantage of off peak rates, which obviously are significantly lower than on peak."

While the smart meters are phased in, those not on time-of-use billing will pay more than the lowest rate for off peak times, but less than the higher rates.

Progressive Conservative Leader Tim Hudak is still questioning the time periods chosen for the higher rates.

"I don't think it's the role of the premier to lecture my mom in her retirement to get up late at night to do the laundry…I don't think every family can have the all kids showered and fed and ready for school before 7 a.m. when the higher rates kick in," he says.

But Duguid says the technology is working even if the returns are less than some expected, "For the most part they're small savings, they're not huge."

Again, though, it depends on the consumer. With more than two million smart meters and time-of-use billing in Ontario, Duguid says some people have seen net energy savings.

"We've now managed to get four per cent of people to move from the expensive peak times to non-peak times. That's savings for all of us because that means that's less generating capacity we'll have to build so we all win when that happens."

Coming up in part two: How the phasing in of smart meters and time-of-use billing will actually happen and what could it mean for consumers.