What is smart metering?

17 February 2026 Reading time: 3 minutes

The UK’s water resources are under increasing pressure due to climate change, population growth, emerging technologies and the need to protect the environment. According to the Environment Agency,* England could face a shortfall of five billion litres of water per day by 2055, equivalent to nearly a third of current daily usage.

One of the big tools being used to tackle this problem is the roll out of smart meters.  Smart water meters are a key part of the strategy to reduce demand, cut leakage and empower customers to use water more efficiently.

In this article, we’ll walk you through what smart metering is, the benefits and what it means for your business.

What is a smart meter?

A smart meter works in the same way a traditional water meter would in that it monitors the flow of water into your business premises. However, unlike traditional meters, which are typically read manually on a monthly or bi-annual basis, smart meters constantly collect consumption data and transmit it to your water retailer without the need for a physical read, often several times a day.

What are the benefits of having a smart meter?

Smart meters give customers access to detailed data about their water use, helping them understand where they might be wasting water and how to cut back, saving water and money.

Valuable insights into water usage patterns can also be provided, enabling water wholesalers and retailers to better manage demand and optimise resource allocation. They also play a crucial role in detecting leaks across the network, allowing for quicker repairs and significantly reducing water loss.

Many people also see smart metering as a fairer way to charge for water, as it’s based on actual usage rather than estimates.

Our Head of Metering and Billing, Mark Doherty, highlighted the benefits of smart metering:

“Smart metering will eventually allow us to have immediate availability of consumption data, empowering businesses to act faster and make smarter decisions on their water usage. The opportunities unlocked through smart metering are huge, marking a transformational shift for our industry."

What will this mean for my business?

The rollout of smart meters is being managed by the regional water wholesalers across the UK. They will work with water retailers to let you know in advance when your smart meter will be fitted.

Once installed and operational, you’ll have access to more detailed consumption data that can help you make smarter decisions about water use. It’s a simple step that could make a big difference to your business and to the environment.

The rollout of smart metering isn’t just about ticking a regulatory box, it’s a chance to save water, protect our water future and give businesses the opportunity to understand more about their water use, and empower them to use water more wisely.

Sources: England faces 5 billion litre public water shortage by 2055 without urgent action - GOV.UK