Everything UK Businesses Need to Know About Smart Meters

Smart meters are quickly becoming the standard across the UK, helping households and businesses track their energy usage more accurately. By showing exactly how much gas and electricity you use, smart meters make it easier to reduce waste, manage costs, and budget effectively. As a business energy consultancy, we often get asked about the benefits of smart meters, how they work, and whether they are free. Here’s your complete guide.

What Is a Smart Meter?

A smart meter is a digital device that records your gas and electricity usage and automatically shares this information with your energy supplier. The usage data is also displayed on a small in-home screen, showing you in real time how much energy you’re using and how much it’s costing. This visibility helps you spot areas where you can cut back and make smarter energy decisions.

Benefits of Smart Meters

• Keep energy costs down

  Smart meters show your daily gas and electricity spend, so you can see where costs are highest and adjust your usage to save money.

• Accurate bills

  No more estimated bills. Smart meters provide exact readings, ensuring you only pay for the energy you use.

• Data protection

  Smart meters do not store personal details, they only track energy usage data.

• Better budgeting

  Real-time insights make it easier to set budgets and manage cash flow.

Are Smart Meters Free?

Yes. Smart meters are provided and installed free of charge by your energy supplier. The installation is straightforward and comes at no additional cost.

How Long Does Installation Take?

Installing a smart meter typically takes around 30 minutes. During this time, your gas and electricity may be switched off briefly.

Do Smart Meters Need Wi-Fi?

No. Smart meters connect through a secure national wireless network, not your home or business Wi-Fi.

Can Smart Meters Be Hacked or Spy on You?

No. Smart meters cannot spy on you. They only record energy usage data, which is encrypted and sent securely to your supplier. Modern smart meters have strict cybersecurity protections in line with government standards.

Are Smart Meters Mandatory?

Smart meters are not mandatory in the UK. However, many suppliers encourage them because:

• They make billing more accurate.
• They help customers understand usage better.
• Some suppliers offer incentives or lower tariffs if you install one.

Can You Switch Suppliers with a Smart Meter?

Yes. If you have a SMETS2 smart meter, you can switch suppliers without needing a replacement. With older SMETS1 smart meters, some customers experienced compatibility issues when switching, meaning the meter reverted to a traditional function. However, many SMETS1 devices are now being remotely upgraded to work like SMETS2.

Can Renters Get a Smart Meter?

Yes, if you pay your own energy bills. You should notify your landlord or letting agent before installation and check your tenancy agreement first.

Different Types of Smart Meters

SMETS1 – First Generation Smart Meters

SMETS1 smart meters were active between 2013 and 2018. Features of SMETS1:

• Automatic meter readings (no need to submit manually).
• In-home display showing real-time usage in kWh and £.
• Remote communication via mobile networks.
• Improved billing accuracy compared to traditional meters.
• Helped customers take first steps toward energy efficiency.

Limitations:

• Not compatible with all suppliers, switching often disabled smart features.
• Dependent on mobile signal strength.
• Now being phased out in favour of SMETS2.

SMETS2 – Second Generation Smart Meters

SMETS2 meters, launched in 2018, are the latest standard in the UK. Features of SMETS2:

• Accurate, real-time billing down to the kilowatt hour.
• Works seamlessly with all UK suppliers, no loss of function when switching.
• Clear in-home display showing energy usage in pounds and pence.
• Built with enhanced cybersecurity standards.
• Connected to the national smart meter network (not reliant on mobile signal).
• Better for the environment, helps reduce energy waste and lower your carbon footprint.

Smart meters are not compulsory, but they are a smart choice for UK households and businesses. They give you clear visibility of your energy usage, ensure accurate bills, and can even unlock cheaper tariffs with some suppliers. As a business energy broker, we recommend upgrading to a SMETS2 smart meter wherever possible, it’s future proof, secure, and works with every supplier.

Still unsure whether a smart meter is right for your business?

The good news is you don’t need to figure it out alone. At Ecosave, we’ve already helped thousands of UK businesses switch to smarter, cheaper energy solutions. Why not get your free quote today and find out how much your business could save?

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