Smart Meters - the transition from SMETS1 to SMETS2

Energy analysis: Matt Nixon, associate at Addleshaw Goddard LLP, explores the transition from first generation smart meters to second generation 'SMETS2' smart meters, as well as the ongoing challenges Great Britain's (GB) energy suppliers are facing as they rollout smart meters.

First published in LexisPSL. LexisPSL Energy includes a dedicated subtopic with practical guidance and legal news items on GB smart metering projects and regulation. Click here for a free trial of LexisPSL.

What are the differences between SMETS1 and SMETS2 meters?  

Smart meters are intended to play a significant part in the transition to a low-carbon economy and the creation of an affordable, sustainable and secure energy supply chain - the smart meter rollout thus forms an important part of the government's Industrial Strategy policy. To achieve the government's smart metering ambitions, electricity suppliers are required by their supply licences to take all reasonable steps to roll out smart meters to all their domestic and small business customers by 31 December 2020.  

Introduction of SMETS1 

Smart meters are designed to replace traditional ('dumb') meters by providing automatic communication between meter readers and energy suppliers. Suppliers will be able to access consumer energy consumption records via a communications hub, while consumers will be able to monitor their usage through digital technologies.

A standard for the minimum common functionality of smart meters, known as SMETS1, was established in December 2012. SMETS1 meters provide for two-way communications between an energy supplier and their customers, enabling