The purpose of this research is based on a literature review analysis mainly based on the evaluation of the effectiveness from the smart metering implementation as a behavioural feedback on the consumer daily lives and their motivations on reducing energy consumption. A feasibility analysis of the improved household monitoring system with integrated smart meters and assessment of changes in residential electricity consumption were performed. In this study, an initial assessment of the pilot project for smart meters installation were conducted; the preparation of the questionnaire survey for involvement of households in the pilot project were described; a literature review on the factors effecting users’ behaviour were conducted; and based on this literature review an assessment of household electricity consumption and CO2 emission savings were provided. This research serves as a basis for further research to explore factors influencing the user behaviour and to make analysis on electricity consumption reduction in households, as well as the further development of smart metering in Latvia.