Energy suppliers will be responsible for supplying smart meters to UK households by 2020, according to the British Government.
The UK Department for Energy and Climate Change (DECC) said that energy suppliers will be responsible for providing smart meters, which will be fitted with a display to enable users to track energy use and carbon emissions in real time.
UK Energy and Climate Change minister Lord Hunt said that smart meters will enable people to control energy use, cut emissions and reduce bills.
"Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills," Lord hunt said.
The devices will also allow consumers to switch between suppliers easily and provide a platform for development of smarter grids in future.
DECC is providing £6m to companies to continue developing smart technology such as electricity storage.