How does a smart meter work?

Smart meters automatically send energy readings to suppliers, greatly reducing the need for estimated bills and providing homeowners with real-time data to manage energy use. They are essential for accessing modern, time-of-use tariffs and are replacing older metering systems like the Radio Teleswitch Service (RTS) meters across the UK. Smart meters are a gateway to a future with 'power to play with', enabling automated readings, advanced tariffs, and seamless app integration for greater control over energy usage.

Understanding how your smart meter works can help you make the most of its features. Fuse Energy is committed to making energy simple and transparent, and a smart meter is key to achieving that. Click here to see how easy it is to get started with Fuse.

Understanding smart meters

What is a smart meter?

A smart meter is a new generation of gas and electricity meter that digitally measures how much energy you use and automatically sends these readings to your energy supplier. Unlike older analogue meters that require manual readings, smart meters provide accurate, up-to-date information on your energy consumption. This technology helps you understand your usage better and typically ensures you only pay for the energy you actually consume.

Key components of a smart meter system

A smart meter system typically consists of several parts working together. The main components are the electricity meter and the gas meter (if you have one), which measure consumption in kilowatt-hours (kWh) for electricity and convert cubic metres or cubic feet to kWh for gas, ensuring accurate billing. The electricity meter usually contains the communications hub, and the gas meter communicates through it. An In-Home Display (IHD) is also part of the system, providing you with a visual, near real-time breakdown of your energy use and costs.

The technology behind smart meters

How data is transmitted to your supplier

Smart meters communicate with your energy supplier using a secure, dedicated network. They automatically send meter readings at regular intervals - typically daily or half-hourly - greatly reducing the need for manual meter readings or estimated bills. While this automated process means billing is primarily based on your actual energy consumption, estimated bills can still occur if readings are missing or delayed due to temporary connection issues or other factors.

The role of the data communications Company (DCC)

In Great Britain, the Data Communications Company (DCC) operates the secure network that smart meters use to send data to energy suppliers. The DCC acts as a central, secure hub, ensuring that your energy data is transmitted reliably and privately between your smart meter and your supplier. This dedicated infrastructure is separate from the internet, providing a robust and secure channel for smart meter communications.

In-Home displays (IHDs) and their function

Your In-Home Display (IHD) is a small screen that comes with your smart meter. It connects wirelessly to your smart meters and shows you how much energy you are using in near real-time, often displaying it in pounds and pence. This immediate feedback helps you see the impact of turning appliances on and off, empowering you to make informed decisions about your energy consumption.

Benefits of smart meters for homeowners

Accurate billing and fewer estimated reads

One of the most significant advantages of a smart meter is accurate billing. Because your meter automatically sends readings to your supplier, you receive bills based on your actual energy use, not estimates. This greatly minimises the likelihood of overpaying or underpaying, and reduces the chance of surprise catch-up bills. Smart meters provide readings in kWh for electricity and convert m³/ft³ to kWh for gas, ensuring precise calculations.

Real-time energy monitoring and insights

Smart meters, coupled with an IHD or a supplier's app, offer unprecedented insight into your energy consumption. You can see exactly how much gas and electricity you are using, when you are using it, and what it is costing you. This real-time data empowers you to identify energy-hungry appliances, adjust your habits, and ultimately gain better control over your energy expenditure.

Unlocking advanced tariffs

Smart meters are crucial for accessing modern, flexible energy tariffs. These include dual-rate tariffs, which offer different prices for peak and off-peak energy usage. By understanding when energy is cheaper, you can shift some of your consumption - for example, charging an electric vehicle or running a washing machine - to off-peak hours, potentially saving money. Without a smart meter, these advanced tariffs are often unavailable.

Smart meters and the UK energy landscape

The radio Teleswitch service (RTS) phase-out

The UK energy industry is currently undergoing a significant transition with the phase-out of the legacy RTS meters. These older meters, which use a longwave radio signal to switch between peak and off-peak rates, began to be retired from 30 June 2025. If you have an RTS meter, your current energy supplier is responsible for replacing it with a smart meter at no upfront cost to you. This industry-wide upgrade is essential to ensure all homes have access to modern energy management tools.

Addressing common concerns: privacy and control

Concerns about data privacy and control are common with smart meters. However, the system is designed with security in mind. The DCC operates a secure network specifically for smart meter data, ensuring it is protected. Ofgem, the energy regulator in Great Britain, oversees the smart meter rollout and sets strict rules on how suppliers can use your data. Consumers have control over who can access their energy consumption data and for what purposes, with more detailed data (like half-hourly) often requiring explicit consent.

Getting and using your smart meter

How to get a smart meter installed

Your energy supplier is responsible for installing and upgrading smart meters. If you do not have one, or if you have an older meter type like an RTS meter, you can contact your current supplier to arrange a free installation. They will schedule an appointment for an engineer to visit your home and replace your existing meters.

Maximising your smart meter's potential with apps

Once you have a smart meter, you can maximise its potential by connecting it to your energy supplier's app. These apps often provide more detailed insights than an IHD, allowing you to track historical usage, set budgets, and receive personalised energy-saving tips. This integration turns your smart meter data into actionable information, giving you the 'power to play with' your energy consumption and manage your home energy more effectively.

Smart meters are a cornerstone of modern home energy management, offering accuracy, insight, and control that traditional meters simply cannot. At Fuse Energy, we believe in empowering you with the tools to understand and manage your energy usage efficiently. Our digital-first approach, combined with 24/7 human support, makes switching to a smarter energy experience straightforward.

Ready to take control of your energy? Switch to Fuse Energy today and benefit from clear pricing and real-time usage data. Click here to get started. To learn more about our mission to make energy abundant, click here.