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Smart meter meaning

Published by a LexisNexis Energy expert
What does Smart meter mean?
In energy regulation and supply contracts, a smart meter is an advanced electricity metering system that records consumption in short intervals and communicates data remotely for billing, settlement and tariff management. In Great Britain, the concept is given effect by the Smart Metering Equipment Technical Specifications (SMETS 1/2) and the Smart Energy Code, rather than a single statutory definition. A compliant smart meter comprises an electricity meter and associated devices (such as a communications hub and in‑home display) and must have the functional capability and meet the other requirements in the SMETS applicable at the time of installation, including interoperability via the Data Communications Company (DCC). Equivalent arrangements apply to gas smart meters. Across England & Wales and Scotland usage is consistent; in Northern Ireland and Ireland the term is used descriptively with equivalent national technical specifications set by the Utility Regulator (NI) and the CRU/ESB Networks (IE), delivering broadly the same functionality (remote reads, remote configuration and time‑of‑use tariffs). Legally significant features include: two‑way communications; remote prepayment and disconnection capability; support for half‑hourly settlement; and data protection considerations for consumption data. The term appears in Ofgem supplier licence compliance, installation and access clauses, billing disputes, and consumer protection obligations.
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View the related News about Smart meter

NEWS
UK energy law weekly update: DESNZ and Ofgem consultations, CfD AR7 budgets, OFTO and network reforms, retail TPI regulation, non-domestic smart meters, ETS aviation, CMP444 rejection, key deadlines

In this issue: Electricity and gas market regulation and licensing Networks and grid connections Renewable energy Capacity Market, balancing services and system flexibility Air emissions, efficiency and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Energy resources on Lexis+® Electricity and gas market regulation and licensing DESNZ has opened a consultation to strengthen Energy Ombudsman (EO) powers. It will concentrate on complaints from domestic energy suppliers, small enterprise complaints against non-domestic suppliers, and heat network complaints. Electricity and gas networks and third-party intermediaries will instead be consulted on separately. The plans include shortening the escalation period for complaints from eight to four weeks, allowing automatic compensation where EO decisions are not put into effect promptly, and granting the EO a statutory designation. DESNZ has also stated that Ofgem will regulate third‑party intermediaries, including energy brokers and price comparison sites, which have previously operated...

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NEWS
Great Britain energy law weekly: Ofgem consultations, LDES regime guidance, Capacity Market innovation, planning reforms, CCUS contracts and EU grid changes—25 September 2025

In this issue: Electricity and gas market regulation and licensing Capacity Market, balancing services and energy system flexibility Planning issues in energy projects Energy disputes Air emissions, efficiency, and climate change International energy New and updated content Dates for your diary Trackers Key developments and materials Daily and weekly news alerts Electricity and gas market regulation and licensing Ofgem consults on extending ongoing fit and proper requirements across all licences Ofgem has opened a consultation proposing that the continuing fit and proper person obligations should apply to every licence holder. These obligations, which for now cover only gas and electricity suppliers and carbon dioxide transport and storage licence holders, would be broadened so that all Ofgem licensees must ensure senior staff remain appropriate for their posts beyond the initial licence grant. The move recognises that company leadership can change and is intended to preserve enduring benchmarks of suitability. Ofgem is seeking input...

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NEWS
Great Britain energy law update: NESO TMO4+ grid connections, heat networks regime, smart meter reforms, nuclear regulatory review, and EU CO2 transport/AI consultations—key dates (14 August 2025)

In this issue: Electricity and gas market regulation and licensing Networks and network connections Capacity Market, balancing services and energy system flexibility Nuclear energy International energy New and updated content Dates for your diary Trackers Energy law titles Daily and weekly news alerts Electricity and gas market regulation and licensing Electricity Code Modifications All live changes to the Connection and Use of System Code (CUSC), Grid Code (GC), the System Owner—Transmission Owner Code (STC) and the Security and Quality Supply Standard (SQSS) are now grouped on NESO’s Modification Tracker. It explains each change’s objective, which stakeholders are impacted, Panel observations on prioritisation, and the proposal’s position in the review journey. For further details, see: Codes. Networks and network connections NESO announces 'Gate 2 to Whole Queue' evidence submission window will close on 26 August 2025 NESO has provided its ten working days’ notice confirming that the evidence submission window for...

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View the related Practice Notes about Smart meter

PRACTICE NOTES
Great Britain smart metering: regulatory framework, DCC/SEC governance, roll-out obligations, non-domestic options, and MAP–supplier contracting (churn, asset tracking and risk protections)

What is smart metering? For an introduction to smart meters, see also Practice Note: What is a smart meter? In Great Britain, licensed electricity and gas suppliers are required under their supply licences to take all reasonable steps to roll out smart meters to domestic and small business customers. The programme is expected to lower customers’ energy bills, boost energy efficiency, and make it simpler to switch energy supplier. The UK government views smart metering as a crucial instrument for a low‑carbon economy, reaching net zero emissions by 2050, and realising ambitions for an affordable, secure and sustainable energy supply chain. The smart meter roll‑out has been extended on several occasions since the Electricity Act 1989 and Gas Act 1986 were amended to place duties on licensed suppliers to complete it. There have also been multiple reviews and publications on progress, including National Audit Office reports such as Rolling out smart meters (November 2018) and Update on the rollout of smart meters (June 2023). In August 2025, DESNZ...

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PRACTICE NOTES
Authorising generation, distribution and supply in Great Britain: Electricity Act 1989 licences, exemptions, Licence Lite and recent supply licence reforms

This Practice Note examines the framework for authorising (by licence or exemption) the activities of generating, distributing and supplying electricity in Great Britain (GB). It does not cover electricity transmission, the operation of interconnectors, multi purpose interconnectors (MPIs), smart meter communications services, or licensing of electricity system operation. For a detailed overview of the wider electricity sector licensing regime, which includes those other areas, see Practice Note: An Introduction to Electricity Licensing in Great Britain. What are the licensing requirements under the Electricity Act 1989 (EA 1989)? It is an offence (punishable by fine) to undertake any of the following ‘licensable activities’ within the electricity sector in GB unless authorised by a licence or an exemption: generating electricity with the intention of providing a supply to any premises, or enabling such a supply to be provided distributing electricity for that purpose supplying electricity to any premises Other types of licensable activities that in GB demand a licence or an exemption...

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PRACTICE NOTES
Great Britain smart metering market: key organisations, statutory and code framework, and electricity and gas supplier obligations under SEC, REC, BSC, DCUSA and supply licences

What is smart metering? For a primer on smart meters, refer to Practice Note: What is a smart meter? GB’s licensed electricity and gas suppliers, under their supply licences, must take all reasonable steps to roll out smart meters to domestic and small business customers. The smart metering rollout is expected to lower customers’ energy bills, improve energy efficiency and make switching energy supplier simpler. For a detailed overview of the timetable for GB’s rollout, the regulation governing smart metering, and the typical structures and financing arrangements used by energy suppliers to enable this rollout, see Practice Note: Smart metering regulation and smart metering projects. What are the key organisations in the GB smart metering market? Capita plc (Capita) — the ultimate owner of the initial smart metering communications licensee, Smart DCC Limited (for more on which, see below). Capita is a business process outsourcing company providing services to both the private and public sectors, and it is listed on the London Stock Exchange (LSE)......

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