We know free smart meters might seem complicated and maybe even a bit scary. We’re here to break it down and help you understand what smart meters are and how they work.

Top smart meter benefits for you

A smart meter provides you with:

1. Automatic readings: Say goodbye to estimated readings and surprise bills. Smart meters send regular readings for you, so you know your bills are always accurate.
2. Easy account management: Top up prepaid meters from your phone or computer, and track your usage without having to take manual readings or wait for meter readers.
3. Real-time spending awareness: Your in-home display (also provided free along with your smart meter) shows exactly how much energy you’re using, allowing you to spot energy-hungry appliances and cut down on waste immediately.
4. Access to flexible tariffs: Smart meters unlock smart ‘time-of-use’ tariffs, where electricity costs less during off-peak hours when demand is lower. This means you could save money by using energy-intensive appliances like washing machines and dishwashers at cheaper times.

Smart meters also deliver benefits beyond your home. By giving energy suppliers better insights into when electricity is needed most, and encouraging people to use energy at quieter times through flexible tariffs, smart meters are helping the UK use more renewable energy. This reduces our reliance on imported energy and cuts carbon emissions – potentially lowering energy costs for everyone in the long run.

Frequently asked questions (FAQs) about smart meters

Here at CSE, some people we speak to on our energy advice line are worried about having smart meters installed. They have concerns about how well smart meters work or think they can only really benefit energy suppliers. So, we’ve answered common questions and concerns below. Use the links to get straight to the topics you’re interested in.

What is a smart meter?
How do smart meters work?
How much does a smart meter cost?
How does a smart meter benefit me?
Concerns about smart meters
Can you be on an Economy 7 tariff if you have a smart meter?
Can you switch supplier with a smart meter?
I rent my home, can I still have a smart meter?
Why does my energy supplier want me to have a smart meter?
Do I have to get a smart meter?
What happens during a smart meter installation?

What is a smart meter?

A smart meter is a modern energy meter that automatically tracks how much gas and electricity you’re using. Unlike old meters which require you to manually take readings, a smart meter does this for you, sending updates to your energy supplier – and giving you a clearer picture of your energy use over time.

How do smart meters work?

Smart meters record overall energy usage per half hour and share these readings with your supplier through a secure network. They should share a reading at least once a month but can send them up to every half-hour. You can choose how often readings are sent. 

The network used to send readings works in a similar way to other wireless systems but does not use the internet.  Older (SMETS1) meters use the mobile network, but newer (SMETS2, installed from 2018) meters have their own network. By the end of the SMETS2 rollout this network will cover 99.25% of Great Britain.

All smart meters should come with an in-home display. This is a separate small device with a screen that you can put wherever you want in your home.

The in-home display receives data from the meter and lets you see your energy usage and costs in real-time. It shows you how much energy you are using (in kilowatts) or how much you are spending (in pounds and pence) at any moment. You can also view your usage or spending for the whole day, week, month or year.

How much does a smart meter cost?

Smart meters are free. The government has required energy suppliers in England, Scotland and Wales to provide smart meters to their customers.

The actual cost is absorbed in energy bills – but because smart meters reduce running costs for suppliers in the long-term (more on this below), this does not mean smart meters are inflating energy costs.

How does a smart meter benefit me?

There are lots of reasons why installing a smart meter is a ‘smart’ choice.

In-home display

One of the big ‘selling points’ for smart meters is the in-home display. This is a little handheld screen you can move around your home, which displays your electricity usage in near-real time. While some people prefer to put them in a drawer and not think about it, the ability to monitor your energy usage has been shown to nudge people towards using less energy. Maybe the display will remind you that something has been left on, or show you how expensive a specific appliance is to run – helping you to become more energy conscious and save on bills.

Smart tariffs

Another benefit of smart meters is that they enable you to access to ‘smart tariffs’. On these tariffs the price for a unit of electricity is cheaper when the sun is shining, the wind is blowing or there’s less demand on the grid, and more expensive when there’s more demand. They are a modern, and more flexible, alternative to Economy 7 tariffs, which have been around since the 70s. Smart tariffs are not suitable for everyone, but some people can find they save a lot of money by shifting what times they use their electricity when on a ‘time of use tariff’. Others benefit from ‘type of use tariffs’ for heat pumps or electric vehicles.

For people who do not want to commit to changing tariff or just want to try out shifting their usage, there is the option to try out the Demand Flexibility Scheme for potential savings without risking any increase in bills.

Credit meters and bills

If you have a credit meter (you pay for your gas or electricity after you use it by direct debit, standing order or on receipt of a bill from your energy supplier), smart meters can get you more accurate bills by ensuring they aren’t based on estimates. This avoids shock bills – such as finding you have been underpaying and have built up a debt you haven’t budgeted for.

If you are already on top of sending in meter readings, smart meters won’t make your bills more (or less) accurate – but will result in one less thing on your to-do list each month!

Prepayment meters and topping up

If you have a prepayment meter (you top up a meter before you use energy), smart meters give you the option to top-up remotely by phone, text, app or online, so you won’t need to visit a shop or Post Office. This means that you can avoid running out of gas or electricity if you have no credit left and the shop is closed, or if you lose your prepayment key or card.

You can still top up at a shop if you prefer. You may need to request a top-up card from your supplier, or some top up apps allow you to scan a barcode in store.

Some suppliers might also give you the option of automatically topping up if your credit drops below a certain amount or include an emergency credit button on your in-home display.

Smart prepayment meters can also be easier to use – customers can keep an eye on how much credit they have left using their in-home display or even an app on their phone. Some of these apps, like in the picture below, will show you an estimate of how long your credit is likely to last, based on your past usage.

Prepayment meters, smart or traditional, can ‘self-disconnect’ (cut you off from the energy supply) if you run out of credit. Smart meters can notify energy suppliers when they self-disconnect.

A smart meter can operate in either prepay or credit mode. This makes it much easier if you want to swap from pay-as-you-go to monthly or quarterly bills, or vice versa. Your meter won’t need to be changed to do this, although your supplier may still need to visit to make the adjustment.

Some people worry about being forced onto prepayment – we address this concern in the FAQ section below.

Other benefits of smart meters

Smart meters mean we can access time-of-use tariffs, where electricity prices vary depending on the supply and demand at different times of the day. These tariffs, along with the information that smart meters provide on electricity demand, mean savings for consumers but also bring big picture benefits too:

• Greener: Encouraging people to shift their electricity usage to different times of the day means we can make use of more renewable electricity, which reduces our emissions.
• Being more self-sufficient: Making the most of the UK’s renewable energy potential also reduces our reliance on imported gas.
• A more secure supply: Being able to predict the demand for electricity reduces the likelihood of power cuts.
• Cheaper: Balancing electricity demand will reduce network costs – these savings would be passed on to consumers.

Concerns about smart meters

Do smart meters actually work?

Smart meter readings are as accurate as traditional meter readings – no better, no worse. The difference is that if you don’t send regular readings from your traditional meter, your bills will be based on ‘estimated readings’ and may not reflect your actual usage. This can lead to shock bills when an actual meter reading is eventually taken.

With smart meters, readings should be sent automatically. This avoids the problem of estimated bills completely. However, some smart meters are not sending automatic readings.

Around 10% of smart meters are in ‘dumb’ mode. This means they are working like a traditional meter, still counting energy usage but not sending automatic readings to suppliers. Sometimes it won’t be obvious on your bills that your meter isn’t sending these readings, so do keep an eye on whether your bills are estimated or not. See our page understanding your gas or electricity bill for more advice here.

If your meter isn’t sending readings, you’ll need to go back to doing so yourself. To take meter readings for a smart meter see So Energy’s page.

How to resolve issues with non-communicating smart meters

To resolve issues with non-communicating smart meters, contact your supplier. Often they can resolve the issue remotely. If you find they are unhelpful, you can make a complaint as often suppliers only send out engineers when a formal complaint has been raised.

You can find some more information on smart meter issues on the Smart Energy GB website.

The in-home displays won’t work

If your in-home display stops working, first check that it is charged and plugged in. You can also try resetting it.

If it still isn’t working, contact your energy supplier. They can help you troubleshoot, check if your smart meter is still sending them readings, and send you a replacement if needed.

Note that even if your display isn’t working, it is likely that your smart meter is. You won’t be any worse off than with a traditional meter. The display is a helpful extra, not the core functionality of your smart meter.

Know your rights:

• Your supplier should provide a working in-home display.
• You can request a free replacement.
• If your supplier is unhelpful, you can escalate to customer support or switch suppliers.

Can smart meters spy on you?

No. The only information smart meters measure or record is how much energy you’ve used. They can’t see which appliances you’re using, or spy on you in your home.

And to keep your data safe, your meter readings are sent through a special, secure network (not your wi-fi), which is protected by a security process designed by GCHQ, the UK government’s intelligence, security, and cyber agency.

To further protect your privacy rights your supplier cannot share your data with anyone else without asking you first.

You can read more about safety and data privacy in relation to smart meters on the Smart Energy GB website.

Forced switching to prepayment meters

Earlier we mentioned that smart meters can easily switch between credit and prepayment modes. While this flexibility is usually a benefit, some people worry about being forced onto prepayment if they’re struggling with bills. Although some suppliers can switch meters for customers with significant energy debt, there are strong protections in place to ensure they only do this as a last resort.

• Suppliers can’t just switch you to a prepayment meter without warning.
• They must make at least 10 attempts to contact you.
• A welfare visit to your home must be conducted before any switch.
• The switch is only allowed if it’s ‘safe and practical’ for you.
• Suppliers must prove the switch is absolutely necessary.

Check out these resources, which can help if you’re building up energy debt:

• Our energy debt on credit meters advice page.
• Citizens Advice ‘Stop your energy supplier moving you to prepayment’ guide.

Can you be on an Economy 7 tariff if you have a smart meter?

Most – but not all – suppliers are now offering smart meters capable of operating in dual-rate (Economy 7) mode.

Can you switch supplier with a smart meter?

Yes, you can.

Older (first-generation or SMETS1) smart meters were known to have issues with sending automatic readings when a customer switched energy suppliers. This has been resolved with updates to the software, and newer (SMETS2, installed from 2018) smart meters never had the problem in the first place.

I rent my home, can I still have a smart meter?

The meter is the property of your energy supplier, not your landlord. If you pay the energy bills, it is your right to request a smart meter from your supplier. It is usually a good idea to let your landlord know if you plan to do this, but you don’t have to.

Why does my energy supplier want me to have a smart meter?

By law, energy suppliers in England, Scotland and Wales must provide smart meters to their customers.

But energy companies also benefit. Smart meters can mean easier, more accurate billing, fewer customer queries, and a better understanding of energy demand. This helps them plan electricity supply more effectively, potentially reducing the risk of power cuts and making the transition to renewable energy smoother for everyone.

Some suppliers even offer cheaper tariffs to customers with smart meters, recognising these mutual benefits. The goal isn’t to spy on you or cause inconvenience, but to create a more responsive, efficient energy system that can help reduce costs and support the move to greener energy.

Ultimately, smart meters are about giving both customers and suppliers better tools to understand and manage energy consumption.

Do I have to get a smart meter?

No. If your energy supplier offers to upgrade your current meter to smart meter, you can decline.

However, if your current meter breaks and needs replacing, as the only meters being made now are smart, it would have to be replaced with a smart meter. The same goes for if you want to switch between prepayment and credit meters or Economy 7 and standard rate.

What happens during a smart meter installation?

Your energy supplier will arrange with you a date and approximate time for an engineer to visit. They will confirm what to expect.

We would recommend you take a meter reading before the smart meter is installed and submit it to your supplier.

The process usually takes less than an hour. An engineer will:

• Install the meter.
• Set up an in-home display.
• Explain how everything works.
• Perform safety checks.

The gas or electricity will have to be switched off temporarily during installation.

Remember, to be sure you feel safe and comfortable, you can:

• Request a 30-minute warning before they arrive.
• Ask for a security password.
• Check the engineer’s ID, if you’re still in doubt, ask them to wait outside while you call your energy supplier.