TL;DR
Smart meters are installed free of charge but you cannot be forced to accept one. First-generation SMETS1 meters frequently lose smart functionality when you switch supplier. Second-generation SMETS2 meters are more reliable across switches. An in-home display shows consumption data but does not reduce bills automatically. Time-of-use tariffs that reward off-peak use require a compatible smart meter and are not available on all tariffs.
Last reviewed: June 2026 | Sources: Ofgem, BEIS, Smart Energy GB
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Energy Key Facts: Smart Meters Installation cost: free to customer Can you refuse: yes SMETS1 switch risk: loses smart function SMETS2 switch risk: lower but not zero Data frequency: half-hourly by default Regulator: Ofgem / BEIS |
What actually changes when a smart meter is installed
A smart meter replaces a traditional gas or electricity meter and automatically transmits consumption data to the supplier over a dedicated wireless network called the Data Communications Company network. This eliminates estimated bills and manual meter reading submissions. An in-home display unit is installed alongside the meter and shows near-real-time energy consumption and cost. The display itself does not reduce bills. Behaviour change by the householder, informed by the display data, can reduce consumption, but the meter installation alone does not produce savings. Suppliers can access consumption data at various frequencies: half-hourly intervals by default, though customers can request daily or monthly data sharing instead. The data sharing preference can be changed at any time under Ofgem's smart metering rules.The risks most people do not check before agreeing to installation
SMETS1 meters lose smart functionality on a supplier switch. First-generation smart meters, installed before approximately 2019, operate on a supplier-specific network. When a customer switches supplier, the meter typically reverts to a basic meter requiring manual readings. This is a known and widespread issue that caught millions of customers who switched for better rates after their smart meter installation. Ofgem has been working to remotely upgrade SMETS1 meters to SMETS2 functionality, but this process has been slow and is not universal. SMETS2 meters are better but not immune. Second-generation SMETS2 meters operate on the national DCC network and are designed to retain smart functionality across supplier switches. In practice, some SMETS2 meters still experience periods of non-communication with a new supplier during a switch, temporarily requiring manual readings. The risk is lower than SMETS1 but not eliminated. In-home displays can become unreliable. The in-home display communicates with the meter via a short-range wireless signal. Displays frequently lose connection, particularly in properties where the meter and display are on different floors or separated by thick walls. A display showing no data does not indicate a meter fault but is a common source of customer confusion and unnecessary contact with suppliers. Time-of-use tariffs require compatible meters and specific supplier offers. Economy 7 and newer half-hourly time-of-use tariffs that charge different rates at different times of day require a smart meter capable of communicating consumption data at the relevant intervals. Not all suppliers offer time-of-use tariffs. Accepting a smart meter installation does not automatically confer access to cheaper off-peak rates. Data privacy considerations exist. Half-hourly consumption data creates a detailed profile of household activity patterns. Customers who prefer not to share granular data can request monthly data sharing, which limits supplier visibility to aggregate consumption. The choice of data sharing frequency does not affect billing accuracy for customers not on time-of-use tariffs.What the small print usually says
Smart meter installation agreements typically confirm the installation is free of charge, that data will be shared with the supplier at a specified frequency, that the customer retains the right to change data sharing preferences, and that the meter remains the property of the supplier or distribution network operator. Some supplier communications imply smart meter installation is mandatory. It is not. Customers have the right to decline installation. Suppliers can encourage installation and may offer incentives, but cannot require it as a condition of supply or penalise customers who decline.Who benefits from a smart meter and who does not
Smart meters benefit customers who want accurate billing without manual readings, who are interested in monitoring consumption to reduce energy use, who wish to access time-of-use tariffs, or who currently have a prepayment meter and want the option to switch to credit billing more easily. Smart meters provide less clear benefit to customers who switch supplier frequently and have a SMETS1 meter, those in properties with construction that impedes in-home display connectivity, and renters whose landlord controls the energy contract and who may not have the authority to request installation.What to verify before you agree to installation
Before accepting a smart meter installation, ask your supplier: whether the meter being installed is SMETS1 or SMETS2, what data sharing frequency will apply and how to change it, whether the installation affects your eligibility for your current tariff, and what the process is if the meter or display develops a fault after installation. Request confirmation in writing that a SMETS2 meter will be installed. If your supplier can only offer SMETS1, assess whether the switch-compatibility risk affects your likelihood of switching supplier in the contract period.Where to complain if installation goes wrong
If a meter installed is faulty, causes billing inaccuracies, or loses smart functionality during a switch, the escalation path is a formal written complaint to the supplier. Installation faults within the first 12 months are typically the supplier's responsibility to rectify without charge. Complaints unresolved within eight weeks can be taken to the Energy Ombudsman.|
Disclaimer This article is for information only and does not constitute regulated energy or financial advice. Smart meter technology and supplier compatibility continue to evolve. Always confirm meter generation and data sharing terms directly with your supplier before agreeing to installation. Kael Tripton Ltd is an independent editorial publisher and is not regulated by Ofgem or the FCA. |
Frequently asked questions
Can my supplier force me to have a smart meter installed?
No. Suppliers are required to offer smart meters to all customers but cannot make installation compulsory. Declining installation does not affect your right to supply or your tariff terms.Will my bills go down automatically after a smart meter is installed?
No. Accurate billing replaces estimated bills, which may result in lower bills if previous estimates were too high, or higher bills if estimates were too low. Actual consumption savings require behaviour change informed by the consumption data.What happens to my smart meter if I switch supplier?
SMETS1 meters typically lose smart functionality and revert to basic meters requiring manual readings. SMETS2 meters are designed to retain functionality but may experience short communication gaps during the switch process.Can I get a smart meter if I am a tenant?
Tenants who pay their energy bills directly to a supplier can request a smart meter installation without landlord permission, as the meter is the supplier's equipment. Tenants whose energy is included in rent paid to a landlord cannot request installation directly.How do I change how much data my smart meter shares?
Contact your supplier and request a change to your data sharing preference. Options are typically half-hourly, daily or monthly. The change can be made at any time and takes effect at the next scheduled data collection interval.|
Sources
Ofgem: Smart Meters |
