The initial aim of the roll out of smart electricity meters in Sweden was to allow remote readings of the households’ monthly electricity consumption for billing purposes. Since then the transition towards a smart grid has become a more prioritized matter. In the roll out of next generation smart meters more attention is therefore given to how the Distribution System Operator (DSO) can benefit from the meter through different smart grid applications. This study uses a qualitative research method to identify three general fields of application and 15 specific concepts corresponding to ways in which the DSO can create added value from the information provided by the smart meter. The benefits of one of these concepts, the so-called “last gasp” and “first breath” functionality, are assessed in a business case. The study concludes that the three main areas of smart meter applications are operating the grid, planning the grid and utility in the customers’ household. The study also shows that the outcomes of the business case on the “last gasp” and “first breath” functionality are highly dependent on the cost of the functionality, however the investment can still be motivated through increased customer satisfaction andimproved outage management. The general conclusion is that the smart meter will play an essential role in providing the control and information needed in the transition to a smarter grid.