This research in progress paper explores smart meters and demand side management (DSM) challenges and how this is perceived by suppliers of smart grids. It builds on semi-structured interviews and a literature review showing that smart meters are a highly important, relevant, and interesting research topic. We identify a need to include knowledge on how to develop smart meter technology further as well as how to increase both supplier and energy user engagement and involvement in development of smart meters technology. Our research shows that there exist gaps between: policies, goals and expectations on one side and implementation and use of smart meters on the other side. Based on initial results we conclude that there is a need to explore DSM and smart meter technology further and to learn from a social-technical IS perspective to overcome a one-sided perspective, or even deterministic view, on technology.