A Guide to UK Smart Meters
For Tenants, Homeowners, and Landlords in the United Kingdom
This page provides official guidance on smart meters, how they work, what they offer, and how to arrange installation. The information is relevant to tenants, homeowners, and landlords across the United Kingdom who wish to better understand the role of smart meters in energy usage and billing.
Smart meters are part of a nationwide upgrade programme led by the UK Government and regulated by Ofgem, aiming to replace traditional electricity and gas meters in every home with accurate, digital, automated metering technology.
What Is a Smart Meter?
A smart meter is a digital energy meter that records your gas and electricity usage in near real time and sends the information directly to your energy supplier. This eliminates the need for manual meter readings and estimated bills.
Smart meters also come with an in-home display (IHD)—a portable screen that shows:
- Your current usage in kilowatt-hours (kWh)
- Real-time cost of energy consumption
- Historical daily, weekly, and monthly data
How Smart Meters Work
Smart meters measure energy use just like traditional meters but have added digital capabilities.
System Overview:
- Data is sent wirelessly to your supplier via a secure national communications network (managed by the Data Communications Company – DCC)
- The in-home display communicates with the meter to give live updates
- Readings are typically sent once a day, or every 30 minutes if you opt in for half-hourly readings
You can still switch suppliers at any time. Smart meter data is protected under UK data protection law and is only shared with your consent.
Recommended Reading: How would surge pricing on smart meters work?
Types of Smart Meters
SMETS1 (First Generation)
- Limited compatibility when switching suppliers
- Some may lose smart functions after switching
SMETS2 (Second Generation)
- Fully interoperable across all energy suppliers
- Use the national smart meter network
- All new installations use SMETS2 devices
Check with your supplier whether your current smart meter is SMETS1 or SMETS2.
Benefits of Smart Meters
- No more estimated bills – charges based on actual usage only
- Real-time feedback – helps reduce consumption and manage budgeting
- Improved billing accuracy – avoids overpayments or underpayments
- Automatic readings – no need for manual submission
- Supports prepayment and credit modes – with easy top-up options via apps or retailers
- Enables flexible tariffs – including time-of-use and off-peak rates
Smart meters are particularly useful for:
- Households looking to reduce energy costs
- People managing energy on a tight budget
- Tenants seeking transparency in shared households
Smart Meters for Prepayment Customers
Smart meters can operate in prepayment mode, offering:
- Remote top-ups via app, online, or phone
- Real-time balance alerts and low-credit warnings
- Emergency and friendly credit options
This improves visibility and control, especially for customers previously reliant on key or card top-ups.
Installation Process
Smart meter installation is free of charge and managed by your energy supplier.
Steps to Install:
- Contact your supplier to request an installation
- Schedule an appointment (you must be present if inside access is required)
- Installation typically takes 1–2 hours for both gas and electricity
- Installer will test the meters, explain the in-home display, and answer questions
All installers must be qualified, carry identification, and follow safety and COVID-19 protocols.
Suitability and Eligibility
Smart meters are suitable for most domestic properties, including:
- Flats and terraced houses
- Rural homes with signal coverage
- Properties with prepayment or credit meters
In some cases, signal limitations or property type may affect installation. Your supplier will advise if your home is eligible.
Landlord and Tenant Guidance
- Tenants paying energy bills directly can request a smart meter without landlord consent
- Landlords cannot unreasonably prevent installation but may need to be informed
- For communal or landlord-managed meters, permission and arrangements must be made through the property owner or management company
Landlords are encouraged to support installation to meet Minimum Energy Efficiency Standards (MEES).
Data Privacy and Security
Smart meter data is:
- Encrypted and secure under UK law
- Collected only with your permission for detailed usage reports
- Used solely for billing, network planning, or government-approved programmes
- Never shared for marketing without your consent
You can choose:
- How often your meter sends readings (daily, monthly, or half-hourly)
- Who can access your data beyond your supplier
Troubleshooting and Compatibility
- If you switch suppliers and lose smart functionality (mainly with SMETS1), the meter will still work as a traditional meter
- SMETS2 meters retain full function after switching
Contact your supplier if:
- Your IHD is not working
- Your readings appear incorrect
- You want to move from prepay to credit mode (or vice versa)
Recommended Action Steps
To arrange or use a smart meter effectively:
- Check with your supplier whether smart meters are available in your area
- Book a free installation appointment at a convenient time
- Familiarise yourself with the in-home display to track and manage usage
- Use your supplier’s app or online account to monitor consumption remotely
- Update your supplier if you move, switch tariff, or change payment type
- Contact Citizens Advice or your supplier if you experience accessibility or technical issues
People also asked...
What causes the increase in my utility expenses after installing a smart meter?
The approximated readings presented may be marginally lower than the precise reading obtained on the day of the exchange. The discrepancy between the previous approximation and the revised precise reading, which will be reflected on the bill in conjunction with the smart meter upgrade, may give the impression that the upgrade caused an increase in energy consumption.
How can I optimise the functionality of my smart meter?
Although exceeding your budget will not result in power outages, it does enable you to monitor your expenditures, which can serve as an incentive to reduce your energy consumption. In the absence of a budget setting, your smart meter will automatically notify you when it is time to top off if it is configured for prepayment.
Why should you say no to getting a smart meter despite the rise in energy bills?
Critics of smart meters are primarily concerned, in addition to the expense, with the potential invasion of privacy that may result from the transmission of a household’s data to a supplier. While smart meters transmit meter readings to the energy provider, no personal information such as name, address, or bank details is stored on them.
Will I get higher energy costs after installing a smart meter?
Adopting a smart meter does not result in an increase in the bill. The only difference between a smart meter and an energy provider is the manner in which you and your provider obtain data regarding your energy consumption. There is no change to your energy tariff or the total amount you pay for energy.
Do smart meters account for the daily standing charge as well?
Even if you have smart meters, standing charges will continue to apply. They are incorporated into the overall energy consumption figure presented on your smart energy monitor or in-home energy display, which provides daily, weekly, and monthly totals.
ECO4 has now come to an end
If you’re looking for information about grants and funding currently available, please visit our Grant Funding page to explore the latest options.
Useful Resources
- Department for Energy Security & Net Zero – Public Sector Smart Meter Guide
- Ofgem – Supply licence guide: Smart metering
- UK Government – Smart meters: a guide for households
- Energy saving trust – Guide to smart meters
- Citizens Advice – Find the user guide for your smart meter’s in-home display
- www.smartenergygb.org
ECO4 Support Available:
- Department for Business, Energy & Industrial Strategy – Energy Company Obligation
- Ofgem – Energy Company Obligation (ECO4) Guidance: Delivery V1.1
- Ofgem – Energy Company Obligation (ECO)
- UK Government – Help from your energy supplier: the Energy Company Obligation
- Which? – Energy Company Obligation (ECO)
Other Support Available:
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