The Information Commissioner's Office (ICO) has warned energy suppliers to carefully handle customer data held on new smart meters.
The agency said it will be keeping a close eye on how domestic and business energy providers use the raft of private information stored in the devices amid security concerns.
Under new plans unveiled by the coalition government, every home in Britain is expected to be equipped with a smart gas meter and electricity meter by 2020 in order to help consumers keep track of their usage and compare energy providers more easily.
A spokesperson for the ICO said: "We will continue to maintain a close dialogue to ensure that their introduction does not compromise customers' privacy.
He added that because energy companies will have to hold records linking meters with householders, all information stored will have to be stored in line with the requirements of the Data Protection Act.
According to Energy UK, customer data security is a key priority for the energy industry.
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