What's a SMETS2 Smart Meter? Why It Matters in 2026

SMETS (Smart Metering Equipment Technical Specification) is the GB-wide standard for domestic smart electricity and gas meters. SMETS1 was the first-generation standard, rolled out from 2011 to 2018. SMETS2 is the second-generation standard, mandatory for all new installs since March 2019.

The structural difference is communication. SMETS1 meters communicated via the supplier's chosen network — when you switched supplier, the meter often stopped reporting and reverted to 'dumb' mode until enrolled into the new supplier's network. SMETS2 meters communicate via the Data Communications Company (DCC), a single national network that all suppliers connect into.

Practically, SMETS2 meters keep working when you switch supplier. The meter does not need to be enrolled, swapped, or reset — the new supplier reads it via DCC from day one. This single change unlocks all the downstream benefits: smart tariffs, SEG export, demand response, and accurate time-of-use billing.

Roughly 90% of UK domestic meters are now SMETS2 in 2026. The remaining 10% is split between SMETS1 meters still on legacy supplier networks (around 5%) and traditional non-smart meters (around 5%, mostly in pre-1980s flats where install access is awkward).

Smart tariffs. Time-of-use tariffs (Octopus Agile, Cosy, Intelligent Go; EDF GoElectric; Eon Next Drive; British Gas PeakSave) all require SMETS2 to function properly. The supplier needs accurate half-hourly readings to bill the time-of-use rates — SMETS1 meters either cannot provide them at all (on out-of-band suppliers) or cannot do so reliably.

SEG export. The Smart Export Guarantee requires a SMETS2 meter to record half-hourly export readings for SEG payment. SMETS1 meters typically cannot record export reliably and most SEG providers require a SMETS2 upgrade before paying export.

Demand response and grid services. SMETS2 supports the supplier's ability to enrol your home into demand-response programmes — Octopus Saving Sessions, National Grid Demand Flexibility Service, and similar grid-balancing schemes that pay participants to reduce demand at peak times. SMETS1 typically does not support these programmes.

In-home display (IHD) and accurate billing. SMETS2 meters pair reliably with the IHD provided at install — showing live consumption, cost, and historical usage. SMETS1 IHDs frequently dropped functionality after supplier switches; SMETS2 IHDs keep working across switches.

Octopus Intelligent Go (7p/kWh overnight window for EV charging): SMETS2 required for the smart scheduling integration to work. The tariff is technically available on SMETS1 in legacy enrolled mode, but the cost benefit relies on smart scheduling — without it, the discount erodes.

Cosy Octopus (three daily off-peak windows): SMETS2 required for accurate half-hourly billing across the three windows. The tariff cannot function correctly on a SMETS1 meter that reports only daily totals.

SEG export rates of 15p/kWh (Octopus Outgoing) and 16p/kWh (EDF dual-fuel): SMETS2 required. SEG cannot be paid on a meter that does not record export with half-hourly granularity. A solar installer who tells you SEG works on SMETS1 is either wrong or describing a low-rate dumb-meter scheme that pays a flat estimated annual figure.

Net financial impact: a household on SMETS2 with a 4kW solar PV system, a 10kWh battery, and an EV on Intelligent Octopus Go can deliver £900–£1,400/year of additional benefit (versus SMETS1 with the same kit) purely from the smart-tariff and SEG access unlocked by the meter standard.

Around 90% of UK domestic meters are SMETS2 in 2026, up from roughly 70% in 2023. The migration was accelerated by the DCC SMETS1 enrolment programme — a 2020–2024 programme that migrated approximately 13 million SMETS1 meters from supplier-specific networks into the DCC backbone.

Migrated SMETS1 meters now communicate via DCC and behave largely like SMETS2 meters — supporting smart tariffs, IHD continuity, and accurate billing across supplier switches. The migration is functionally complete, with only a small residual pool of SMETS1 meters not yet enrolled.

Where a SMETS1 meter has been DCC-enrolled, the suppliers' systems treat it as effectively SMETS2 for tariff and SEG purposes. The hardware is still SMETS1 but the data path is SMETS2-equivalent. Most homeowners with DCC-enrolled SMETS1 meters do not need to upgrade hardware to access smart tariffs or SEG.

The remaining SMETS1 meters not on DCC are the awkward residual — typically because the supplier-specific network is being wound down but the meter has not yet been picked up by the DCC migration. Suppliers are obliged to either enrol the meter or offer a free SMETS2 upgrade within a reasonable timeframe.

Check first whether your SMETS1 has been DCC-enrolled. The simplest test is whether your IHD keeps working when you switch supplier, and whether you can access a smart tariff (Cosy, Agile, Intelligent Go) without your supplier flagging a meter incompatibility. If yes, your SMETS1 is DCC-enrolled and behaves like SMETS2.

If your SMETS1 is not DCC-enrolled, contact your current supplier and request a smart meter upgrade. The upgrade is free under the smart meter rollout obligation. Most suppliers can book a SMETS2 install within 6–10 weeks; book the appointment for a time when the property is unoccupied for 2–3 hours.

If you have a traditional non-smart meter (rare in London 2026), you can request a SMETS2 install from your supplier at no cost. There is no obligation to accept — non-smart meters remain legal — but smart tariff and SEG access is impossible without a SMETS2 install.

Special case — landlords and HMOs. Some HMO buildings have unmetered or sub-metered electricity. Smart meters cannot easily be installed on sub-metered circuits because the meter is downstream of the building's main meter. SEG and smart tariff access in HMOs typically requires a building-level metering review before solar or battery becomes economically viable.

Force the upgrade now if: you are planning solar PV in the next 12 months (SEG requires SMETS2); you are switching to an EV-specific tariff (Intelligent Go, Drive, GoElectric all require SMETS2); you are participating in Octopus Saving Sessions or similar demand-response programmes.

Wait if: your SMETS1 is DCC-enrolled and behaving correctly (no benefit to swapping hardware); your home is on a fixed tariff with no plans to switch to time-of-use (no benefit); your property is on the market and the new owner can decide post-completion.

Practical install note: a SMETS2 install typically takes 60–90 minutes. The engineer fits new electricity and gas meters and a paired IHD. Power is off for 30–60 minutes during the install — schedule for a time when freezers, work-from-home setups, and medical devices are unaffected. Old meter readings are taken before disconnection and carried into the new meter for billing continuity.

Faulty SMETS2 install rates remain higher than SMETS1 due to the cellular communications module — typically 5–8% of installs need a return visit to fix WAN connectivity within 30 days. If the IHD shows no consumption data 24 hours after install, log a fault with the supplier rather than assuming it will resolve itself.

SMETS2 also matters for the new generation of demand-flexibility programmes ramping up in 2026. National Grid's Demand Flexibility Service runs winter-evening events that pay households to reduce consumption between 5pm and 7pm — typical payment is £3–£8 per event with 6–12 events per winter. Participation requires SMETS2 and a supplier offering the service (Octopus, EDF, Eon Next and British Gas all participated in winter 2025–26).

For landlords managing multiple properties: SMETS2 across the portfolio is increasingly worth pursuing proactively. The smart-tariff savings (Cosy or Intelligent Go), the SEG export readiness if solar is added, and the Property Portal data integration under the Renters' Rights Act 2026 all benefit from SMETS2 coverage. The free supplier-led upgrade route is the cheapest mechanism — but in portfolio context, the time cost of organising one upgrade per quarter across a portfolio adds up.

A small but real consumer right: under the Smart Meter rollout obligation, suppliers must offer a smart meter to every domestic customer who requests one. They are not allowed to charge for the install. Where a supplier delays repeatedly or refuses an upgrade, escalating to Citizens Advice and then Ofgem typically resolves the matter within 8–12 weeks. The escalation rate has fallen materially since 2023 as supplier installer capacity has caught up with demand.