What is a smart meter and how does it work?

Smart meters are the latest generation of gas and electricity meters being rolled out across Great Britain. They are designed to give you more control and understanding of your household energy use. These devices record how much gas or electricity you use and automatically send this information to your energy supplier, reducing the need for manual meter readings and the likelihood of estimated bills.

Smart meters offer a clearer picture of your energy use, and with Fuse Energy, you can gain even deeper insights into your consumption. Our app helps you make informed decisions about your home energy. Click here to see how easy it is to get started.

Understanding what a smart meter is

More than just a meter

A smart meter is more than just a device that measures your energy consumption. It is a digital tool that provides real-time data on your energy use, often displayed on an In-Home Display (IHD). This shows you your indicative spending in pounds and pence. This immediate feedback can help you identify energy-hungry habits and make informed decisions to manage your usage. The Fuse app, for example, allows you to track your usage in near real-time, helping you understand where your energy is going.

The difference between smart and traditional meters

Traditional meters simply record a running total of energy used and require manual readings. Smart meters, however, digitally record your energy consumption and transmit these readings automatically to your supplier. This reduces the reliance on estimated bills, meaning you pay for the energy you have used more accurately. They also come with an In-Home Display (IHD), which provides a clear, real-time view of your indicative energy consumption in pounds and pence.

How smart meters work

Smart meters use secure wireless technology to send your energy readings directly to your supplier. Here is a breakdown of the process:

Measuring usage

The smart meter records your electricity and gas consumption in kilowatt-hours (kWh) for electricity and cubic metres (m³) or cubic feet (ft³) for gas (which is then converted to kWh). For context, the average UK home uses around 2,500 kWh of electricity per year and 9,500 kWh of gas per year1.

Sending data

This usage data is securely transmitted via a dedicated, encrypted network managed by the Data Communications Company (DCC) to your energy supplier. This happens automatically, usually once a day. Electricity smart meters can also send more frequent readings, such as half-hourly data, when configured for it. Gas smart meters typically provide one daily cumulative reading.

In-Home Display (IHD)

Your IHD connects wirelessly to your smart meter, showing you up-to-date information on your energy use and indicative costs. This helps you see the impact of turning appliances on and off.

Two-way communication

Smart meters can also receive information from your supplier, such as tariff updates or messages. This two-way communication is a key feature that traditional meters lack.

Practical benefits for UK domestic energy users

For UK households, smart meters offer several tangible benefits that can help manage energy bills and promote more efficient energy use.

More accurate billing

With a smart meter, your supplier receives regular readings, which leads to more accurate bills and reduces the likelihood of estimates. This helps you avoid overpaying or underpaying, which can lead to unexpected catch-up bills.

Better budget management

The In-Home Display (IHD) shows your energy use in near real-time, in indicative pounds and pence. This immediate feedback helps you understand how much energy different appliances consume and identify opportunities to reduce waste. Many users find this visibility empowers them to make small changes that add up to significant savings.

No more manual readings

Forget scrambling to find your meter in a dark cupboard. Smart meters automatically send readings to your supplier, saving you time and effort.

Access to smart tariffs

Smart meters enable access to a wider range of tariffs, including dual-rate variable tariffs that offer cheaper electricity during off-peak hours. This can be particularly beneficial for households with electric vehicles or those who can shift their energy-intensive activities to cheaper times.

Environmental awareness

By understanding your energy consumption patterns, you can make more conscious decisions about reducing your carbon footprint. Smart meters provide the data needed to identify where you can be more energy efficient.

Common concerns about smart meters

While the benefits are clear, some people have concerns about smart meters. Here are the most common ones addressed:

Privacy

Smart meters send encrypted data about your energy use, not your personal activities. Your energy supplier handles this data securely, in full compliance with data protection regulations.

Health

The UK Health Security Agency (UKHSA), which superseded Public Health England, has carried out extensive research and concluded that exposures to the radio waves produced by smart meters do not pose a risk to health. The levels of radiation are well within international guidelines and are much lower than those from other everyday devices such as mobile phones and Wi-Fi equipment.

Installation

Smart meter installation is typically free and is arranged by your energy supplier.

Switching suppliers

Smart meters are designed to work with any supplier. Most modern smart meters (SMETS2) retain their smart functionality even if you switch energy suppliers. Older smart meters (SMETS1) may temporarily lose some smart features when you switch, but these are being upgraded to work across the national network.

Getting a smart meter

The UK government is committed to offering every home a smart meter. If you do not have one yet, your energy supplier will contact you to offer a free installation. You can also contact them directly to arrange an appointment.

A smart meter is a powerful tool for understanding and managing your energy use. By providing real-time data and more accurate billing, it puts more control into your hands, helping you make informed decisions and potentially save money on your energy bills.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you are paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. If you do not have a smart meter, Fuse Energy can upgrade your non-smart meter, completely for free. This can make it easier to track spending and make informed decisions about your energy use. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click here to switch to Fuse Energy today. Find out about our mission by clicking here.