--- title: "What is a smart meter?" description: "What is a smart meter? Find out how these digital devices automatically send your energy readings, provide near real-time data, and help you manage your usage." url: "https://www.fuseenergy.com/blog/what-is-a-smart-meter" updated: "2026-10-17" --- # What is a smart meter? Smart meters are digital devices that automatically send your gas and electricity readings to your energy supplier, doing away with the need for manual meter readings. They are being rolled out across Great Britain as part of a national programme to modernise the energy grid, with millions already installed in homes nationwide. These meters provide near real-time energy consumption data, typically displayed on an in-home display (IHD), allowing you to monitor your usage and make informed decisions about your energy consumption. Smart meters are a key step towards a more efficient and sustainable energy future for your home. With Fuse Energy, you can leverage your smart meter data for transparent energy management and make informed decisions about your usage. Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today. ## Understanding smart meters: the basics ### What is a smart meter? A smart meter is an advanced gas or electricity meter that digitally records your energy usage and automatically sends this data to your energy supplier. Unlike traditional meters, which require someone to manually read them, smart meters streamline the process, ensuring your bills are based on actual consumption rather than estimates. They are the next generation of energy meters, replacing the older analogue models found in many homes. ### How do smart meters work? Smart meters function by measuring your energy consumption (electricity in kilowatt-hours (kWh), gas in cubic metres or cubic feet, then converted to kWh) and transmitting this information securely to your energy supplier. This data transfer happens via a dedicated, secure national network operated by the Data Communications Company (DCC), which is separate from public broadband. The process typically involves: * **Measurement:** The smart meter records your electricity and/or gas usage. * **Transmission:** Readings are sent automatically and wirelessly to your energy supplier, usually daily, but can be more frequent (e.g., half-hourly) depending on your preferences and supplier arrangements. * **Display:** An in-home display (IHD) unit, provided with the smart meter, shows you how much energy you are using in pounds and pence, often in near real-time for electricity and frequently for gas. > **What is the DCC?** > > The DCC operates the secure national network that connects smart meters to energy suppliers, network operators, and other authorised parties in Great Britain. Established to prevent smart meters from losing functionality when customers switch suppliers, the DCC ensures data is transmitted securely and reliably, underpinning the entire UK smart meter rollout. ## Key benefits of smart meters for your home Smart meters offer several practical advantages for managing your household energy. ### Accurate billing and no more estimates One of the most significant benefits of smart meters is the end of estimated bills. By sending readings directly to your supplier, smart meters ensure you only pay for the energy you actually use. This accuracy helps you budget more effectively and avoids the frustration of overpaying or underpaying based on guesswork. ### Monitoring your energy usage The in-home display (IHD) that comes with your smart meter provides clear visibility into your energy consumption. You can see how much gas and electricity you are using, and what it is costing you, often in near real-time. This immediate feedback can help you identify energy-intensive appliances or habits, empowering you to make adjustments and potentially reduce your energy usage. For a deeper dive into how your energy is measured, you might find our article on half-hourly meter readings explained useful. ### Enabling smarter tariffs Smart meters are crucial for accessing a new generation of flexible energy tariffs. These "smarter tariffs" can offer different rates at different times of the day, allowing you to save money by using energy during off-peak periods when demand (and often price) is lower. Without a smart meter, you might miss out on these opportunities to optimise your energy costs. ## Types of smart meters: SMETS1 vs SMETS2 In the UK, there are two main generations of smart meters: SMETS1 and SMETS2. The distinction primarily concerns how they communicate with energy suppliers. ### First generation: SMETS1 meters SMETS1 (Smart Metering Equipment Technical Specifications first generation) meters were the initial smart meters rolled out in Great Britain, starting around 2013. These meters often connected to individual supplier networks. A common issue with early SMETS1 meters was that they could lose their smart functionality (meaning they would stop sending automatic readings) if you switched energy suppliers. However, many eligible SMETS1 meters have since been migrated onto the national DCC system, improving their interoperability. ### Second generation: SMETS2 meters SMETS2 meters are the second generation of smart meters, becoming standard from 2018 onwards. These were designed from the outset to connect to the national smart meter network operated by the DCC. This means SMETS2 meters are much more reliable at maintaining their smart functionality even if you switch energy suppliers, ensuring a seamless experience. They also support advanced features like remote tariff updates and compatibility with third-party in-home displays and apps. ## Getting a smart meter: eligibility and installation ### Who is eligible for a smart meter? Most homes in Great Britain with a gas and/or electricity meter are eligible for a smart meter installation. Energy suppliers are required to offer smart meters as part of the national rollout. You do not need to own your home to get one; if you are the bill payer, you can usually arrange for an installation, though it is often a good idea to inform your landlord if you rent. You can learn more about the process in our guide to [smart meter installation](https://www.fuseenergy.com/blog/smart-meter-installation). ### The smart meter installation process Getting a smart meter is straightforward and free of charge. To arrange an installation, you simply need to contact your energy supplier. They will schedule an appointment at a time that suits you. The installation typically takes a couple of hours, during which your energy supply will be briefly switched off. The installer will also show you how your new smart meter and in-home display work. ## Addressing common smart meter concerns It is natural to have questions about new technology in your home. Here is a look at some common concerns regarding smart meters. ### Data privacy and security Smart meters are designed with security in mind. They record how much gas and electricity you use and send this data to your supplier. Personal details like your name, address, or bank account information are not stored on or transmitted by the smart meter itself; these are linked to your account held by your supplier and are subject to strict data protection laws like GDPR and the UK Data Protection Act. Ofgem, the energy regulator, sets rules for how suppliers can use your data. For domestic consumers, suppliers need your opt-in consent to use data at greater detail than daily reads or for marketing purposes. You also have the right to opt-out of sharing consumption data more frequently than once a day. The DCC operates the secure network that protects your meter data with encryption and authentication. ### Connectivity and reliability issues While smart meters are generally reliable, connectivity issues can sometimes occur, particularly in areas with poor mobile signal or in buildings with thick walls. If your smart meter goes offline or stops communicating, it will revert to functioning like a traditional meter, and you may need to provide manual readings until the issue is resolved. Your energy supplier is responsible for addressing these problems. Many SMETS2 meters are designed with improved connectivity to work even in challenging signal areas. ### Are smart meters compulsory? No, smart meters are not compulsory. While the UK government is committed to a national rollout and energy suppliers are required to offer them, you have the right to refuse installation. However, if your existing meter is faulty, unsafe, or an older type being phased out (like a Radio Teleswitch meter), your supplier may need to replace it, and a smart meter might be the only option available as traditional meters are no longer being manufactured. ## Maximising your smart meter with Fuse Energy A smart meter is a powerful tool, and with Fuse Energy, it becomes your gateway to true energy control and capability. ### Transparent energy management with the Fuse app Fuse's digital-first approach leverages your smart meter data to offer unparalleled transparency and actionable insights directly through our app. You can move beyond basic readings to understand your energy consumption patterns, identify areas for improvement, and make informed decisions about how you use energy. This empowers you with the capability to manage your energy effectively, rather than just reacting to bills. ### 24/7 human support for your smart meter We understand that new technology can sometimes bring questions or concerns. That is why Fuse Energy offers 24/7 human customer support. If you experience any connectivity issues with your smart meter or have questions about your data, our expert team is available around the clock to provide reassurance and practical help, making the technology accessible and stress-free. ### Empowering your energy decisions At Fuse, we see smart meters as a foundational step towards a future where energy is abundant and easily managed. By providing you with clear data and intuitive tools, combined with dedicated support, we empower you to take control of your energy destiny. This aligns with our vision of a 'good timeline' where you feel powerful and in control of your energy decisions, rather than constrained by them. ## The future of smart energy Smart meters are more than just a replacement for old meters; they are a crucial component of a modern, flexible energy system. By providing detailed, real-time data, they help the UK move towards a greener, more efficient energy grid. This shift allows for better integration of renewable energy sources and helps to balance supply and demand across the country. For you, this means a future with greater control over your energy use, more accurate billing, and the ability to participate in a more dynamic energy market. --- Rates, availability, and regional off-peak windows change. Check the source page for current terms. **Disclaimer** For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.