What is a smart meter — and why do you need one to save through flexibility?

14 May 2026
Smart Meter

Previously, we wrote about UK energy providers helping households save through flexibility programmes. One of the main requirements for taking part was having a smart meter.

So today, let’s look at why smart meters are actually needed.

First of all — what is a smart meter?

In simple terms, a smart meter measures how much electricity your home uses and automatically sends readings to your energy provider every 30 minutes.

A smart meter on its own doesn’t directly reduce your bills. But it gives suppliers more accurate data, which means more accurate billing and access to smarter energy services. It also helps households better understand their electricity usage — and once you can see your consumption more clearly, it becomes easier to manage and reduce it.

Why are smart meters important for flexibility programmes?

Flexibility programmes rely on half-hourly electricity data to understand:

  • when electricity is being used
  • how much electricity was used before a flexibility event
  • and whether usage was reduced during that event

In other words, smart meters make it possible to monitor and verify participation, so suppliers can calculate rewards correctly.

What kind of smart meter do you need?

In most cases, you’ll need a second-generation smart meter — also known as a SMETS2 meter.

To check whether your meter is suitable:

  • look in your energy provider’s app or website to see whether half-hourly readings are enabled
  • if you can see detailed half-hourly usage data, your setup is usually compatible with flexibility programmes
  • you can also check the meter itself — second-generation smart meters are usually labelled “SMETS2” somewhere on the device or in the installation paperwork

If you already have a smart meter, check your supplier app to see when your home uses the most electricity. You can also compare your peak usage times with peak carbon intensity in your area using Energy Trace to better understand the environmental impact of your electricity consumption.

Photo by Siân Wynn-Jones on Unsplash