Smart meters are being rolled out across the UK and energy suppliers must take all reasonable steps to install them in every home. For rental properties, this creates a three-way relationship between the landlord, the tenant, and the energy supplier — with different obligations depending on who holds the energy account.
The energy account holder controls the smart meter. Where the tenant pays their own bills, they hold the account and control the meter. Where the landlord pays bills (HMOs, bills-included lets), the landlord holds the account and must manage smart meter obligations.
SMETS1 vs SMETS2 meters — why the type matters
There are two generations of smart meters in operation in the UK. SMETS1 (first-generation) meters were installed before 2019 and have a significant limitation: they can lose smart functionality when the tenant switches energy supplier, reverting to a traditional dumb meter until the new supplier configures them. SMETS2 meters (the current standard, deployed from 2019) operate via the Data Communications Company (DCC) national network and maintain smart functionality across supplier switches.
- SMETS1 meters: May lose smart functionality on supplier switch — relevant when incoming tenants want to switch supplier. Energy suppliers can remotely upgrade some SMETS1 meters to operate on the DCC network
- SMETS2 meters: Maintain smart functionality regardless of supplier switch — the DCC network is supplier-agnostic
- How to check: Ask the current energy supplier whether the installed meter is SMETS1 or SMETS2 — note this in the property inventory
- Relevance for landlords: Advise tenants of the meter type at move-in so they understand the implications of switching supplier
Who controls the smart meter — landlord or tenant?
The energy account holder controls the smart meter. This determines who requests installation, who receives the meter data, and who is responsible for ensuring meter access during the tenancy.
| Arrangement | Account holder | Who controls meter | Who receives data |
|---|---|---|---|
| Tenant pays own bills | Tenant | Tenant | Tenant (account holder) |
| Bills-included let | Landlord | Landlord | Landlord (account holder) |
| HMO — shared supply | Landlord | Landlord | Landlord (account holder) |
| Serviced accommodation | Landlord | Landlord | Landlord (account holder) |
| HMO — individual meters | Each tenant | Each tenant | Each tenant individually |
Can a landlord refuse smart meter installation?
Where the tenant is the bill-payer, a landlord cannot lawfully prevent installation. The tenant's right to a smart meter derives from their relationship with their energy supplier. Access to the property for installation must be provided on reasonable notice, as with any authorised access. A landlord who refuses access may be in breach of the tenant's statutory rights.
Where the landlord holds the energy account, the energy supplier will contact the landlord directly. Landlords must cooperate. Landlords may request a delay for legitimate practical reasons — refurbishment works in progress, an unsafe meter location, a lease restriction — but these are grounds for rescheduling, not permanent refusal.
- Tenant as bill-payer: Landlord cannot block installation — provide reasonable access when requested
- Landlord as bill-payer: Cooperate with supplier installation requests; raise practical scheduling concerns rather than refusing
- Legitimate delay grounds: Active refurbishment, unsafe meter access, lease consent requirement — agree alternative date with the supplier
- Not a legitimate ground: Simply not wanting a smart meter installed — this is not a lawful basis for refusal
Smart meter data — GDPR obligations for landlords
Smart meters generate detailed energy consumption data. Under GDPR and the Smart Metering Installation Code of Practice (SMICoP), energy suppliers share detailed consumption data only with the account holder unless explicit consent has been given for third-party access.
Where the tenant holds the energy account, the landlord has no automatic right to the tenant's consumption data. Requiring tenants to share smart meter data as a condition of the tenancy — without a valid lawful basis under GDPR — may constitute an unlawful data processing requirement and could attract challenge under the Tenant Fees Act 2019 if framed as a tenancy condition.
- Account holder data: Only the account holder (tenant or landlord) has automatic access to consumption data
- No automatic landlord right: Where the tenant holds the account, the landlord cannot require data sharing without consent
- Half-hourly data: More granular data sharing requires explicit opt-in from the account holder — this is not granted automatically at meter installation
- Landlord-held accounts: Where you pay the bills, you have full access to your own meter data — use it to monitor consumption and identify efficiency issues
Smart meters and EPC ratings
Smart meters do not directly affect EPC ratings. The EPC is calculated using the Standard Assessment Procedure (SAP) which measures the building's physical energy efficiency characteristics — insulation, heating system type, glazing, orientation — rather than how consumption is monitored.
However, smart meters are indirectly relevant. Smart time-of-use tariffs enabled by SMETS2 meters can make low-carbon heating systems (particularly air source heat pumps) more economical to run, which strengthens the financial case for those EPC-improving investments. Some heat pump controllers and solar export systems also require smart meter connectivity for optimised operation.
To lift an EPC from Band D or E to Band C, invest in insulation, heating upgrades, and solar panels — not in the meter type. A smart meter alone will not move your EPC band. Use available grant schemes (ECO4, GBIS, BUS) to fund the structural improvements that do matter.
Practical landlord steps — at move-in and move-out
Good practice at the start of a tenancy includes documenting whether the property has a smart meter, noting the meter type (SMETS1 or SMETS2) and serial number, confirming the In-Home Display (IHD) is present and functional, and informing the tenant of any smart meter implications for supplier switching.
- Record meter type (SMETS1/SMETS2) and serial number in the property inventory
- Confirm the IHD is in the property and working — note this in the inventory
- If the tenant will be the bill-payer and the property has no smart meter, inform them they may request one from their chosen energy supplier
- Advise SMETS1 tenants of the supplier-switching limitation — their meter may temporarily revert to dumb mode
- At move-out: take a smart meter reading on the checkout date; ensure the departing tenant closes their energy account; register as account holder for the void period; confirm the IHD is still in the property
The In-Home Display (IHD) — a landlord responsibility
The IHD is the small display unit that shows real-time energy consumption and cost data. It is paired to the smart meter and stays with the property — it must not be removed by a departing tenant. Include the IHD in the property inventory at move-in with its make, model, and condition noted. Verify it is present and functional at move-out.
- IHD stays with the property: It is paired to the meter and must remain — departing tenants should not take it
- Include in inventory: Note make, model, condition, and pairing status at move-in
- If the IHD is lost or damaged: Contact the energy supplier — they can sometimes replace or re-pair it, though this may be at cost
- IHD and supplier switches: Where a SMETS1 meter loses smart connectivity on supplier switch, the IHD may also temporarily lose its live data feed — inform incoming tenants