SMETS2 smart meters explained

SMETS2 smart meters explained

SMETS2 smart meters are the current standard for energy management in Great Britain, offering accurate data and opening the door to more dynamic energy tariffs. They are designed to give you greater control over your home's energy use. Understanding your energy consumption is the first step to taking charge of your bills. With a SMETS2 smart meter, you gain clearer insights into your usage, helping you make informed decisions.

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What is a SMETS2 smart meter?

A SMETS2 smart meter is an advanced energy meter that automatically records your electricity and gas usage, sending the data directly to your energy supplier. This removes the need for manual meter readings and provides a precise picture of your energy consumption.

Understanding smart metering Equipment technical specifications (SMETS)

SMETS stands for Smart Metering Equipment Technical Specifications. These are the technical standards that smart meters in Great Britain must meet. SMETS2 meters are the second generation of these devices, built with enhanced capabilities and improved interoperability compared to their predecessors.

How SMETS2 meters communicate

SMETS2 meters communicate securely via the Data Communications Company (DCC) network. This dedicated, secure national network ensures that your energy usage data is sent reliably and privately between your meter and your energy supplier. This secure communication is fundamental to the meters' functionality, enabling accurate billing and smart services.

Key differences between SMETS1 and SMETS2

The primary difference between SMETS1 and SMETS2 meters lies in their interoperability. Older SMETS1 meters sometimes lost their smart functionality if a customer switched energy suppliers. SMETS2 meters, however, are designed to maintain their smart capabilities even when you change suppliers, ensuring a seamless experience. This improved interoperability was a key driver for the development and rollout of SMETS2 technology.

The benefits of SMETS2 for your home

SMETS2 meters offer several advantages that can transform how you manage your home energy.

Accurate billing and an end to estimated reads

With a SMETS2 meter, your energy supplier receives automatic, accurate readings of your electricity and gas consumption. This means an end to estimated bills, ensuring you only pay for the energy you actually use. This precision helps you budget more effectively and avoids unexpected charges.

Seamless supplier switching

One of the most significant improvements with SMETS2 meters is the ability to switch energy suppliers without losing smart functionality. This means you can confidently shop around for the best deals and tariffs, knowing your meter will continue to work as intended with your new provider. This empowers you to make choices that suit your energy needs and budget.

Access to innovative tariffs

SMETS2 meters enable access to a new generation of energy tariffs, such as time-of-use or dynamic pricing plans. These tariffs can offer cheaper rates during off-peak hours, encouraging you to shift your energy consumption and potentially save money. For example, charging an electric vehicle overnight could become significantly more cost-effective.

Greater control and insight into energy usage

Your SMETS2 meter, often paired with an in-home display (IHD), provides indicative, near real-time insights into your energy consumption. This immediate feedback helps you understand which appliances use the most energy and identify opportunities to reduce waste. According to Ofgem's updated Typical Domestic Consumption Values, effective 1 July 2026, the average UK home uses around 2,500 kWh of electricity and 9,500 kWh of gas per year. Knowing your own usage in detail allows you to make informed decisions to manage your consumption more effectively.

How SMETS2 meters work

SMETS2 meters are part of a sophisticated national infrastructure designed to modernise Great Britain's energy system.

The role of the data Communications Company (DCC)

The DCC is central to the operation of SMETS2 meters. It operates the secure national network that facilitates communication between your smart meter and your energy supplier. The DCC ensures that data is transmitted securely and reliably, underpinning the entire smart metering system.

Data security and privacy

Concerns about data privacy are common with smart technology. SMETS2 meters are designed with robust security features. The data transmitted is encrypted, and smart meters do not store personal information like your name, address, or bank details. This information is securely transmitted over the DCC network to your energy supplier for accurate billing. You can also control how frequently your energy usage data is shared with your supplier.

What data does a smart meter collect?

A smart meter primarily collects data on your electricity and gas consumption in kilowatt-hours (kWh). It records how much energy you use and when you use it. This data is securely transmitted to your energy supplier for accurate billing and to help you monitor your usage.

In-home displays (IHDs) and your energy data

An in-home display (IHD) is a small screen that connects wirelessly to your smart meter, providing an indicative, near real-time view of your energy consumption in pounds and pence. It shows you how much energy you're using at any given moment, helping you to identify energy-intensive activities and make immediate adjustments. This direct feedback empowers you to manage your energy more actively.

Getting a SMETS2 smart meter

Upgrading to a SMETS2 smart meter is a straightforward process.

Eligibility for a free smart meter upgrade

Most homes in Great Britain are eligible for a smart meter upgrade. Energy suppliers are responsible for arranging and installing smart meters, typically at no upfront cost to eligible customers. Contact your current energy supplier to check your eligibility and arrange an installation.

The installation process

Once you've arranged an installation with your supplier, a qualified engineer will visit your home to replace your existing meters with SMETS2 smart meters. The process is typically quick, with a brief power interruption during the electricity meter exchange. The engineer will also set up your in-home display and explain how to use it.

What to do if you have an older meter

If you have an older meter, such as a Radio Teleswitch Service (RTS) meter, it's particularly important to arrange an upgrade. RTS meters are a legacy meter type that uses a longwave radio signal to switch between peak and off-peak rates. The RTS signal is being phased out, with the switch-off beginning on 30 June 2025. Your current supplier will replace these meters with modern smart meters, often free of charge. Once you have a smart meter, you'll be able to switch to modern, digital-first energy experiences.

Common questions about SMETS2 smart meters

Understanding SMETS2 meters can bring up a few questions. Here are some common ones.

What if my smart meter goes offline?

If your smart meter goes offline, it means it's temporarily unable to send readings to your supplier. This can happen for various reasons, such as network issues or a power cut. Your energy supply will not be affected, and your supplier will typically use estimated readings for billing until communication is restored. If the issue persists, contact your energy supplier for support.

Can I choose my smart meter model?

In Great Britain, you cannot choose a specific smart meter model. Energy suppliers are responsible for arranging and installing smart meters, and they will typically install the model they use as standard. The focus is on ensuring the meter meets SMETS2 specifications and works reliably with the national network.

How Fuse Energy supports your smart meter journey

Fuse Energy positions the SMETS2 smart meter as the gateway to a digital-first, empowering energy experience, enabling customers to gain unprecedented control and transparency over their energy usage. SMETS2 meters are foundational to Fuse Energy's vision, providing the indicative, near real-time data and control necessary for customers to have 'power to play with' their energy. Fuse Energy leverages SMETS2 technology to offer a digital-first experience, complemented by 24/7 human customer support to assist with any smart meter queries or issues. SMETS2 data feeds directly into the Fuse Energy app, providing customers with transparent, indicative, near real-time insights and control over their energy usage.

Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're 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 don't 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.

Published on 9 Apr 2026

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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.