SMETS2 smart meter: what it is and how it works

A SMETS2 smart meter is the current standard for energy metering in Great Britain, designed to provide accurate, automatic readings and maintain functionality even if you switch energy suppliers. These second-generation smart meters are a crucial part of modern home energy management, offering greater control and insight into your electricity and gas consumption. They help ensure you only pay for the energy you actually use, moving away from estimated bills.

Take control of your home energy with a modern approach. Fuse Energy offers free SMETS2 smart meter installations as part of our easy home energy upgrades, integrating seamlessly with the Fuse app for real-time usage insights and greater control over your consumption. Click here to switch to Fuse Energy today.

What is a SMETS2 smart meter?

The next generation of energy metering

SMETS2 stands for Smart Metering Equipment Technical Specifications, and the '2' indicates it is the second generation of these devices. These meters automatically record your electricity and gas usage and send this data securely to your energy supplier. This largely eliminates the need for manual readings and estimated bills, ensuring you only pay for the energy you actually use. Energy suppliers have been required to install SMETS2 meters since 2022, making them the current industry standard.

Key features of SMETS2 technology

SMETS2 meters come with several key features that set them apart from older metering systems. They are designed to be interoperable, meaning they should continue to function as smart meters even if you change energy suppliers. This resolves a common issue with some first-generation smart meters (SMETS1), which sometimes lost smart functionality after a supplier switch. SMETS2 meters also provide more detailed energy consumption data, allowing for a clearer understanding of your usage patterns.

How SMETS2 smart meters work

Automated readings and data transmission

SMETS2 smart meters automatically record your electricity and gas consumption in regular intervals, typically every 30 minutes for electricity and daily for gas. This usage data is then securely transmitted to your energy supplier. This automated process means you no longer need to submit manual meter readings, and your bills are based on your actual usage rather than estimates. This accuracy helps avoid unexpected charges or large credit balances.

Secure communication via the DCC network

The secure transmission of data from your SMETS2 meter to your energy supplier is managed by the Data Communications Company (DCC). The DCC operates a national smart metering network, which acts as a secure and reliable channel for all smart meter communications. This dedicated network ensures that your energy usage data is protected and only accessible by authorised parties, such as your energy supplier.

Real-time energy insights

Beyond accurate billing, SMETS2 meters provide real-time energy insights through an in-home display (IHD) or your energy supplier's mobile app. These tools show you how much energy you are using, what it is costing, and sometimes even how much carbon you are emitting. This immediate feedback can help you identify energy-hungry appliances and adjust your habits to save money and reduce your environmental impact.

Benefits of SMETS2 smart meters

Accurate billing and no more estimates

One of the most significant advantages of a SMETS2 smart meter is accurate billing. By sending automatic readings to your supplier, estimated bills become a thing of the past. You only pay for the energy you have actually used, which can help you budget more effectively and avoid the frustration of overpaying or underpaying.

Enabling flexible tariffs

SMETS2 meters are crucial for unlocking more flexible and potentially cheaper energy tariffs. With their ability to record consumption data frequently, they enable time-of-use tariffs. These tariffs charge different rates for electricity at different times of the day, encouraging you to shift energy-intensive activities to off-peak hours when demand (and often price) is lower. This can lead to significant savings, especially for electric vehicle owners or those with battery storage.

Greater control over your energy use

Having real-time data at your fingertips empowers you to take greater control over your energy consumption. Whether through an in-home display or a mobile app, you can monitor your usage, set budgets, and identify where you might be able to cut back. This visibility transforms energy from an abstract cost into a manageable household expense.

Seamless supplier switching

Unlike some first-generation smart meters, SMETS2 meters are designed to maintain their smart functionality even if you switch energy suppliers. This means you can confidently shop around for the best deals without worrying that your meter will revert to a 'dumb' meter, requiring manual readings again. This seamless switching capability fosters competition among suppliers and ensures you always have access to the best available tariffs.

Identifying your smart meter type

Distinguishing SMETS1 from SMETS2

It can sometimes be tricky to tell if you have a SMETS1 or SMETS2 meter just by looking at it, as they often look similar. However, a key indicator for SMETS2 meters is their ability to retain smart functionality after switching suppliers. If your smart meter stopped sending automatic readings when you changed suppliers, it is likely a SMETS1 meter. If it continued to work seamlessly, it is probably a SMETS2. Your energy supplier can also confirm your meter type.

What to do if you have an older meter

If you have an older, traditional meter or a SMETS1 meter that has lost its smart functionality, you can typically request an upgrade to a SMETS2 meter from your energy supplier. These upgrades are usually free for eligible homes. Upgrading ensures you benefit from accurate billing, real-time insights, and access to more flexible tariffs.

The radio Teleswitch service (RTS) phase-out

The Radio Teleswitch Service (RTS) is a legacy system that uses longwave radio signals to control electricity meters, typically for multi-rate tariffs like Economy 7. The industry-wide phase-out of RTS meters began on 30 June 2025, and these meters are being replaced with smart meters. If you have an RTS meter, your current supplier will contact you to arrange a free upgrade to a smart meter. Once upgraded, you will be able to take advantage of modern energy management tools.

Upgrading to a SMETS2 smart meter

Eligibility and installation process

Most UK homes are eligible for a free SMETS2 smart meter installation. Your energy supplier will typically arrange the installation, which is carried out by a qualified engineer. The process usually involves replacing your existing electricity and gas meters with the new smart models. Fuse Energy offers free SMETS2 smart meter installations to eligible customers.

What to expect during installation

During the installation, an engineer will visit your home to replace your old meters. This usually takes a couple of hours, and your power may need to be temporarily switched off for a short period while the electricity meter is exchanged. The engineer will also set up your in-home display and ensure your new smart meters are communicating with the network. They will explain how everything works and answer any questions you have.

Getting the most from your new meter

Once your SMETS2 meter is installed, connect it to your energy supplier's app (if available) and regularly check your in-home display. Pay attention to your energy usage patterns and explore whether flexible tariffs could save you money. Many apps, including the Fuse app, leverage SMETS2 data to provide budgeting tools and real-time insights, helping you optimise your energy consumption.

Common questions about SMETS2 meters

Troubleshooting connectivity issues

Occasionally, SMETS2 meters can experience connectivity issues, leading to temporary loss of smart functionality. If your meter stops sending readings, first try restarting your in-home display. If the problem persists, contact your energy supplier. They can remotely diagnose the issue and, if necessary, arrange for an engineer to investigate. The DCC network is designed for resilience, but local factors can sometimes affect communication.

Data privacy and security

The data transmitted by SMETS2 meters is encrypted and sent securely via the DCC network. Your energy supplier can access your consumption data for billing and service purposes, but strict regulations are in place to protect your privacy. You have control over how your more detailed energy data is used and can typically opt out of sharing it for purposes beyond billing. Ofgem regulates the UK energy market, including the rollout and operation of smart meters, to ensure consumer protection.

Impact on energy bills

SMETS2 meters themselves do not directly reduce your energy bills. However, by providing accurate, real-time usage data and enabling access to flexible tariffs, they empower you to make informed decisions that can lead to savings. Understanding your consumption helps you identify areas for efficiency, and choosing tariffs that reward off-peak usage can significantly lower your costs. The average UK home uses around 2,500 kWh of electricity per year, and a SMETS2 meter can help you manage this usage more effectively.

Fuse Energy is committed to making energy management transparent and empowering. Our free SMETS2 smart meter installations and intuitive app allow you to see your energy usage in real-time, helping you take control and move towards a future with more power to play with.