Can I get a cheaper tariff with a smart meter in the UK? — June 2026

Compare smart meter tariffs (whole-of-market, June 2026)

A smart meter doesn't automatically make energy cheaper — unit rates and standing charges still depend on the tariff you pick. What it does do in 2026 is open the door to the cheapest tariffs on the market: time-of-use and EV deals with off-peak rates of 6.7–7p/kWh, Octopus Cosy at 13p for heat-pump homes, half-hourly trackers, and free-electricity sessions. None of these can run on a traditional (“dumb”) meter.

With the July 2026 cap rising 13% to £1,862/yr from 1 July, comparing now lets you either lock a competitive fixed deal before the increase or move onto a smart tariff that suits your routine. Use the form to request a comparison for your postcode — if you're unsure whether you have SMETS1 or SMETS2, suppliers can usually confirm during the switch.

What you'll need to compare accurately

• Your postcode (to calculate your regional unit rates and standing charge)
• Whether you want electricity only, gas only, or dual fuel
• Rough annual usage in kWh (estimates are fine if you don't have a bill)
• Whether you can shift use to off-peak hours (EV charging, dishwasher, washing, heat pump)

When a smart meter helps you pay less

• You can shift electricity use to off-peak hours (EV charging, laundry, dishwasher, heat pump)
• You drive an EV — overnight 6.7–7p charging slashes the biggest single load
• You have a heat pump — Cosy's three daily 13p slots beat single-rate at the £1,862 cap
• Your bills are often estimated and you want them aligned to actual usage

When it won't help (on its own)

• You pick a time-of-use deal but most of your usage stays in the peak (28–34p) window
• You stay on the same tariff and don't change how or when you use energy
• Your current fixed deal is already highly competitive for your region and usage
• You can't move heavy loads off-peak — a simple cheap fixed deal may beat TOU

EV charging at 7p vs 25p

A typical EV needs ~2,500–3,500 kWh/yr. At 7p that's roughly £175–£245 a year; at 25p it's £625–£875. A smart meter and an EV tariff can save £400–£600/yr on charging alone.

Heat pump on Cosy at 13p

Running a heat pump (SCOP ~3–4) during Cosy's three 13p slots cuts running cost materially versus single-rate at the capped ~£1,862 level — especially if you pre-heat in the cheap windows.

Lock in before 1 July

With the cap up 13% to £1,862 from 1 July 2026, fixing a competitive deal now can save a typical home around £300 over 12 months versus staying on the variable cap.

SMETS2 (recommended)

Second-generation meters connect to a national network, so they keep working in smart mode across suppliers and tariffs. This is what you want for EV, Cosy, tracker and free-session tariffs — ask for SMETS2 if you're getting a meter installed.

SMETS1 (older)

First-generation meters can lose smart functionality after a switch and run in “dumb” mode until enrolled onto the national network. Many SMETS1 meters have now been enrolled, restoring smart features. You can still switch supplier with one — but check that the smart tariff you want will work before committing.

Choosing time-of-use without shifting usage

If most of your usage stays in the 28–34p peak window, a TOU tariff can cost more — even with a 7p off-peak rate. Match the tariff to your routine.

Only comparing unit rates

Standing charges (~58–70p/day depending on region) vary a lot. Always compare projected annual cost, not just the headline p/kWh.

Waiting past 1 July to fix

The cap rises 13% to £1,862 on 1 July 2026. Leaving a fix until after the rise can mean paying more on the variable cap in the meantime.

Assuming a smart meter = cheaper

The meter is a tool. Savings come from choosing the right smart or fixed tariff and (for TOU) shifting load to the cheap hours.

Not checking your region

Rates and standing charges differ across Great Britain due to network costs. Your postcode determines what's genuinely cheapest for you.

Overlooking exit fees on fixed deals

If you're mid-contract, early exit fees can outweigh short-term savings. Check your end date before switching.

Can a smart meter help me get a cheaper energy tariff in the UK?

Yes. A smart meter unlocks smart and time-of-use tariffs (where prices vary by time of day), including off-peak rates of 6.7–7p/kWh against a ~25p standard rate. They cut bills if you can shift use to cheaper periods, but aren't automatically cheaper for everyone — check unit rates, standing charge and the peak/off-peak windows before switching.

Do I need a smart meter to switch supplier or change tariff?

No. You can usually switch supplier and change tariff without a smart meter. But the cheapest deals — time-of-use, EV, Cosy, trackers and free-electricity sessions — require a working smart meter to apply the right prices at different times.

Which tariffs are only available with a smart meter?

Time-of-use and EV tariffs (Intelligent Octopus Go 7p, E.ON Next Drive ~6.7p, OVO Charge Anytime ~7p, British Gas Electric Driver ~8.95p), Octopus Cosy at 13p for heat-pump homes, half-hourly trackers and free-electricity sessions. The best fit depends on whether you can run appliances or charge an EV in the lower-cost periods.

Will my bills automatically go down after getting a smart meter?

Not automatically. A smart meter gives accurate readings (cutting estimated bills) and clear visibility of usage. The actual savings come from switching to a better-value tariff and, for time-of-use deals, shifting when you use energy.

How do I know if a time-of-use tariff will save me money?

Compare the off-peak and peak rates with your current tariff, then look at your day/night usage split. As a rule of thumb, a night-rate tariff like Economy 7 pays off when at least 40% of your electricity is used in the cheap window. Mostly peak usage can increase bills.

How do I get a smart meter, and is it free?

Yes, it's free. Request one from your energy supplier and ask for a SMETS2 meter so it keeps working smartly when you switch. After install, check your in-home display shows live usage and that half-hourly reads are being sent — smart tariffs need this.

What's the difference between SMETS1 and SMETS2?

SMETS2 meters work smartly across suppliers via a national network — ideal for switching and smart tariffs. SMETS1 meters can drop to “dumb” mode after a switch until enrolled (many now have been). You can still switch with a SMETS1, but confirm your chosen smart tariff will function first.

Should I fix now before the July 2026 price cap rise?

Often yes. Ofgem confirmed on 27 May 2026 that the cap rises 13% to £1,862/yr from 1 July. Locking a competitive fixed deal before then can save a typical home around £300 over 12 months versus staying on the variable cap — compare for your postcode to see your numbers.