A smart meter is a modern gas or electricity meter that can automatically send meter readings to your supplier, so bills can be based on actual readings instead of estimates.
Smart meters are part of the UK smart metering rollout. They normally come with an in-home display that shows energy use, often in near real time and in pounds and pence.
How a smart meter works
A smart meter records gas or electricity usage and sends readings to your energy supplier. Ofgem calls this working in “smart mode” when the meter automatically sends gas and electricity readings.
Your usage is still measured in kWh. The smart meter mainly changes how readings are collected and how easily you can monitor usage.
actual bill = kWh used × unit rate
+ standing charges
+ any account adjustments
What is an in-home display?
An in-home display, sometimes shortened to IHD, is the small screen that comes with many smart meters. GOV.UK says smart meters come with an in-home display that shows energy use in near real time, expressed in pounds and pence.
Energy used
The display can help you see how much energy is being used at different times.
Pounds and pence
Many displays show estimated cost, which can make usage easier to understand.
Does a smart meter save money?
A smart meter does not save money automatically. It does not reduce your unit rate or remove your standing charge. The saving potential comes from better information and more accurate billing.
It may help you spot expensive usage patterns, understand appliance costs, avoid estimated bills and access certain smart or time-of-use tariffs.
Turn readings into costs
Use the calculators to estimate how usage converts into annual or appliance-level cost.
Potential benefits of smart meters
- Automatic meter readings, if the meter is working in smart mode.
- Fewer estimated bills.
- Easier tracking of electricity or gas usage.
- In-home display showing near-real-time usage information.
- Potential access to some smart tariffs or time-of-use deals.
- Prepayment top-up options may be easier on smart prepay meters.
What if a smart meter is not working in smart mode?
If a smart meter stops sending readings automatically, it may be described as working in “dumb mode”. Citizens Advice says smart mode means your meter should automatically send readings to your supplier, and if it is not working in smart mode, you will need to send regular readings yourself.
If your bills start being estimated, check the actual meter, compare readings with your in-home display if you have one, and contact your supplier.
Still check your bills
Smart meters can improve billing accuracy, but you should still check bills, readings, tariff rates and account balances.
Smart meter readings and data
Smart meters can send readings automatically, but you can usually choose how often readings are sent. Citizens Advice says you can change how often readings are sent.
More frequent readings can make usage information more useful, while less frequent readings may limit some detailed insights. Your supplier or smart meter settings should explain the available options.
Smart meters and smart tariffs
Some tariffs need a smart meter because they use time-of-use pricing, half-hourly readings or flexible rates. Economy 7 is an older dual-rate tariff, while newer smart tariffs can be more dynamic.
A smart tariff may help if you can shift electricity use to cheaper periods, for example EV charging, battery charging or flexible appliance use.
What to check before or after getting a smart meter
- Is the meter sending readings automatically?
- Does your bill show actual readings or estimated readings?
- Does the in-home display match the meter readings closely?
- Do you understand the tariff’s unit rate and standing charge?
- Can you access any useful smart tariffs?
- Do you still need to submit readings while a problem is being fixed?
FAQs
What is a smart meter?
A smart meter is a modern energy meter that can automatically send meter readings to your energy supplier.
Does a smart meter mean no more estimated bills?
It can reduce estimated bills if it works in smart mode, but you should still check bills and readings.
What is an in-home display?
An in-home display is a small screen linked to the smart meter that shows usage and estimated cost information.
Do I have to send readings with a smart meter?
Usually not if the meter is working in smart mode. If it stops sending readings, you may need to submit manual readings until it is fixed.