Are smart meters free?

Yes. Energy suppliers must offer smart meter installation at no direct cost. The cost is spread across all energy bills industry-wide, so you are indirectly paying whether you have one or not. There is no financial advantage to refusing a smart meter.

Can I refuse a smart meter?

Yes. Smart meters are not compulsory. You can decline installation. However, suppliers may not offer their best tariffs to customers without smart meters. There is no penalty for refusing, but you may have fewer tariff options.

Will a smart meter save me money?

A smart meter itself does not save money — but the real-time information it provides can help you change behaviour and reduce usage. Studies suggest potential savings of 2-4% for those who actively use the in-home display. The main benefit is convenience and accurate billing.

Smart Meters UK — Benefits, Problems + Should You Get One? | PocketWise

Smart meters are the next generation of gas and electricity meters, automatically sending readings to your supplier and showing your energy use in real time. Over 30 million have been installed in UK homes.

What Is a Smart Meter?

Component	What It Does
Smart electricity meter	Measures electricity use, sends readings automatically
Smart gas meter	Measures gas use, sends readings automatically
In-Home Display (IHD)	Shows real-time and historical usage in £ and kWh
Communications hub	Connects meter to supplier via secure network

How They Work

Feature	Detail
Readings sent	Automatically, typically daily or half-hourly
You can still read it	Physical display shows usage
In-home display	Shows costs in near-real-time
Network used	DCC (Data Communications Company) secure network
Data security	Encrypted, regulated, you control who sees data

Benefits

Benefit	Detail
Accurate bills	No more estimated bills
No meter readings	No need to submit readings manually
Real-time usage information	See what you’re spending
Better tariffs	Access to time-of-use and smart tariffs
Easier switching	New supplier gets readings automatically
Prepayment features	Top up remotely, no key/card
Remote operations	Credit/prepay mode change without visit
Help suppliers	Grid management (benefits everyone)

Potential Problems

Problem	Reality
Goes “dumb” when switching	SMETS2 meters should work across suppliers; SMETS1 may lose smart functions temporarily
Connectivity issues	Some rural areas have poor signal
IHD stops working	Can request replacement; meter still works
Anxiety from seeing costs	Some people find real-time costs stressful
Privacy concerns	You control data sharing; suppliers use anonymised data
Installation disruption	Takes 30–60 minutes; supply off briefly
Cannot be forced	You can refuse

SMETS1 vs SMETS2

Feature	SMETS1	SMETS2
Installed	2011–2018 (mostly)	2018–present
Switching	Often lost smart functions	Works across all suppliers
Network	Supplier’s own network	DCC national network
IHD	Supplier-specific	Standardised
Current installs	No longer installed	Standard for new installs

If You Have SMETS1

Situation	Outcome
Switching supplier	May temporarily lose smart functions
Meter still works	Yes — as a standard meter
Upgrading to SMETS2	Supplier can arrange (free)
IHD stops showing data	Normal; meter readings still sent automatically in background

Smart Tariffs

Tariff Type	How It Works	Best For
Time-of-use	Different rates at different times	Those who can shift usage
Agile/variable	Half-hourly pricing	Very flexible users
EV tariff	Cheap overnight for EV charging	Electric vehicle owners
Economy 7/10	Cheap night rate (traditional)	Storage heaters, overnight use

Examples of Time Savings

Action	Standard Tariff	Smart/ToU Tariff
Running dishwasher at 11pm vs 6pm	Same cost	Significant saving
Charging EV overnight	Same cost	Much cheaper
Doing laundry off-peak	Same cost	Cheaper

Getting a Smart Meter

Step	Detail
1	Contact your energy supplier
2	Book installation appointment
3	Engineer installs meter(s) — 30–60 minutes
4	Engineer shows you how to use IHD
5	Start using real-time data

What to Expect on Installation Day

What Happens	Duration
Engineer arrives	—
Supply turned off briefly	15–30 minutes
Old meter removed	—
New meter installed	—
Supply restored	—
IHD set up and explained	5–10 minutes
Total time	30–60 minutes

Using Your In-Home Display

Feature	How to Use
Real-time cost	See what you’re spending right now (£/hour)
Historical data	Compare days, weeks, months
Budget setting	Set daily budget; display warns if exceeded
By fuel	Switch between gas and electricity views
Traffic light system	Green/amber/red for usage levels

Tips for Behaviour Change

Action	Impact
Check daily spend each morning	Awareness prompts action
Identify high-use appliances	Turn on one at a time, watch IHD
Set a daily budget	Challenge to stay within it
Compare with yesterday/last week	Track improvement

Should You Get a Smart Meter?

Get One If

Situation	Why
You forget to submit readings	Automatic readings
You want real-time usage data	IHD visibility
You have/want an EV	Access to EV tariffs
You want smart tariffs	Required for time-of-use
You are on prepayment	Easier top-ups

Consider Waiting If

Situation	Why
Very rural location	Connectivity issues possible
Planning to switch supplier soon	Get settled first
SMETS1 concerns	If supplier is still installing SMETS1 (rare now)

No Reason to Refuse If

Concern	Reality
Privacy	Data is secure; you control sharing
Cost	It is free; you pay indirectly either way
Forced usage reduction	Does not control your supply
Health concerns	Radio emissions lower than mobile phones

For more on managing energy costs, see our reduce energy bills guide and energy price cap explained.