Can I get a cheaper energy tariff with a smart meter?
Sometimes, yes — but it depends on your smart meter type, payment method and whether you can use smart features like half-hourly pricing. Here’s how to tell what you’re actually eligible for in the UK, and how to compare tariffs safely.
- Smart meters can unlock certain tariff types (including smart time-of-use), but they don’t automatically mean cheaper energy.
- Your eligibility can hinge on SMETS2 vs SMETS1, communications coverage and whether you agree to share half-hourly readings.
- We show realistic examples with numbers and a checklist to help you decide if it’s worth it.
Estimates only. Prices and eligibility vary by supplier, region, meter type and payment method. Always check tariff terms, standing charges and any exit fees before switching.
Fast answer: a smart meter can help — but it’s not a guarantee
In the UK, having a smart meter can make you eligible for certain tariffs (especially smart time-of-use deals that change price by time of day). Those tariffs can be cheaper for some households — for example, if you can shift usage to off-peak hours — but they can also cost more if your usage is mostly at peak times.
Key point: The biggest driver of whether you’ll get a cheaper deal is still your unit rates + standing charges for your region and payment method — not simply whether you have a smart meter.
When a smart meter may help you pay less
- You can move flexible usage (washing, tumble drying, dishwasher) to cheaper times.
- You have (or plan) an EV or battery and can charge/store off-peak.
- You want more accurate bills and fewer estimated readings.
- You’re eligible for a supplier’s smart tariff that genuinely prices lower overall for your pattern of use.
When it may not be cheaper
- Your usage is mainly during peak hours (often late afternoon/evening).
- You’re on prepayment and have limited tariff choice in your area.
- Your smart meter can’t reliably communicate (or is running in “dumb” mode).
- The smart tariff has higher peak rates or higher standing charges that outweigh off-peak savings.
What to check before switching
- Smart meter type (SMETS2 is most interoperable; SMETS1 can vary).
- Whether the tariff requires half-hourly readings.
- Unit rates and standing charges for your region.
- Exit fees and any fixed-term conditions.
Compare tariffs for your home (smart & standard)
Tell us a few details and we’ll help you compare available home energy tariffs across the market, including deals that may require a smart meter. We’ll also highlight key terms like standing charge, contract length and exit fees where available.
Good to know: If you’re not sure what smart meter you have, you can still compare. We’ll explain what to confirm before you switch.
What you’ll need (takes ~2 minutes)
- Your postcode (for regional pricing)
- Email and phone (to send quotes and help if you want it)
- Optional: whether you have a smart meter and how you pay (credit / direct debit / prepay)
Get your quote
How smart meter tariffs work (UK explanation)
1) Your meter sends readings automatically
A smart meter can send readings to your supplier (often daily or half-hourly). This can reduce estimated bills and make it easier to price electricity differently at different times.
2) Some tariffs need half-hourly data
Many time-of-use tariffs require you to share half-hourly electricity usage. This helps suppliers calculate peak vs off-peak consumption. Terms and consent settings vary.
3) Your unit rates + standing charge still matter
Even with a smart meter, the total cost depends on the tariff’s unit rates (p/kWh) and standing charges (p/day) for your region and payment method.
4) Eligibility can depend on meter type
SMETS2 meters are designed to work across suppliers. SMETS1 meters may work fully, partially, or need an upgrade depending on whether they’ve been enrolled into the national smart network.
Reminder: You can usually switch supplier with a smart meter, but you may temporarily lose smart functionality (e.g., automatic readings) if compatibility issues arise. Always ask the new supplier what happens in your case.
Smart meter tariff types vs standard tariffs (what’s different?)
Use this table to sanity-check whether a “smart” tariff is likely to suit your household. Always compare the whole bill (standing charge + unit rates across times) rather than focusing on one headline rate.
| Tariff type | Usually needs a smart meter? | Best for | Watch-outs |
|---|---|---|---|
| Standard variable (SVT) | No | People who want flexibility with no fixed term | Price can change; may not be the cheapest available |
| Fixed tariff | No (but allowed) | Budgeting certainty for a set period | Exit fees may apply; check standing charge |
| Smart time-of-use | Often yes | Households who can shift usage off-peak; EV/battery owners | Peak rates can be high; may require half-hourly data sharing |
| Tracker / dynamic pricing | Often yes | People who accept price movement and want potential dips | Bills can rise quickly; not ideal for tight budgets |
| Prepayment smart tariffs | Sometimes | Prepay customers who want easier top-ups and accurate billing | Choice can be narrower; eligibility varies by supplier/region |
Decision checklist: is a smart tariff likely to suit you?
- Yes, likely suits you if…
- You can shift at least some usage to off-peak; you’re comfortable with time bands; and you’ll check peak rates and standing charges.
- Be cautious if…
- Most of your electricity is used at peak times (e.g., 4–9pm), you can’t easily change routines, or you need stable monthly budgeting.
- Probably not worth it if…
- The tariff’s standing charge is noticeably higher and your consumption is modest — standing charge increases can outweigh small unit-rate wins.
Two realistic scenarios (with numbers)
These are illustrative examples to show how the maths works. Rates vary by supplier, region and payment method. Assumptions are shown under each scenario.
Scenario A: flat-rate fixed tariff is cheaper
- Usage: 3,100 kWh electricity/year
- Pattern: 80% peak, 20% off-peak
- Smart TOU tariff (example): peak 34p/kWh, off-peak 18p/kWh, standing charge 55p/day
- Flat fixed tariff (example): 27p/kWh, standing charge 50p/day
| Estimate | Smart TOU | Flat fixed |
|---|---|---|
| Unit cost/year | (2,480×£0.34)+(620×£0.18)=£954.80 | 3,100×£0.27=£837.00 |
| Standing charge/year | 365×£0.55=£200.75 | 365×£0.50=£182.50 |
| Total estimated/year | £1,155.55 | £1,019.50 |
What this shows: If most of your electricity happens at peak times, a TOU deal can be more expensive even when off-peak looks attractive.
Scenario B: smart time-of-use becomes cheaper when you shift usage
- Usage: 4,200 kWh electricity/year (e.g., larger household or EV charging)
- Pattern: 45% peak, 55% off-peak (after shifting EV charging/appliances)
- Same example tariffs as above
| Estimate | Smart TOU | Flat fixed |
|---|---|---|
| Unit cost/year | (1,890×£0.34)+(2,310×£0.18)=£1,059.60 | 4,200×£0.27=£1,134.00 |
| Standing charge/year | £200.75 | £182.50 |
| Total estimated/year | £1,260.35 | £1,316.50 |
What this shows: If you can move a meaningful chunk of electricity to off-peak, smart TOU can win — even with a higher standing charge.
Tip: If you’re unsure about your peak vs off-peak potential, start by listing what you could realistically run later (laundry, dishwasher, immersion heater, EV charging). If you can’t shift much, a smart tariff may not help.
Costs, exclusions and common pitfalls (UK)
Smart tariffs can be great in the right circumstances, but these are the issues that most often trip people up when they’re trying to get a cheaper deal.
1) Higher standing charges can erase savings
Some smart deals offset low off-peak rates with higher standing charges. If you’re a low user (e.g., small flat), compare the annual total carefully.
2) Peak rates may be significantly higher
Time-of-use tariffs can penalise evening usage. If cooking/heating and entertainment are concentrated at peak times, bills may rise.
3) Smart meter communications issues
If your meter can’t communicate reliably (signal/coverage), suppliers may restrict smart tariff eligibility or you may lose smart readings temporarily.
4) Half-hourly data consent
Many smart tariffs need half-hourly readings. You should be told what data is used and how to change your sharing settings (supplier policies vary).
5) Exit fees on fixes
If you choose a fixed smart deal, check for exit fees. If prices drop later, leaving early could reduce the benefit.
6) Gas is usually not time-of-use
Most smart time-of-use pricing focuses on electricity. Gas is typically a single unit rate, so “smart savings” often come from electricity behaviour changes.
If you’re on prepayment: you may still be able to access competitive tariffs, but availability can be narrower and depends on your area and supplier. Comparing with your postcode is the quickest way to see your options.
FAQs
Do I need a smart meter to access the cheapest tariffs?
Not always. Many competitive fixed and variable tariffs don’t require a smart meter. A smart meter mainly helps if you want tariffs that rely on automated readings (especially time-of-use pricing).
What’s the difference between SMETS1 and SMETS2?
SMETS2 is the newer standard and is designed to stay smart when you switch supplier. SMETS1 can still work well, but interoperability can vary. If you’re unsure, your supplier can confirm your meter type.
Can a smart meter help reduce my bills without switching?
It can help you understand usage patterns (especially with an in-home display or app) and reduce waste. But the tariff itself may still be expensive — comparing unit rates and standing charges is usually where the biggest difference is found.
Do smart tariffs require half-hourly readings?
Often, yes for electricity time-of-use. Suppliers should explain what data is needed for billing. If you’re not comfortable, choose a tariff that doesn’t rely on half-hourly pricing.
Will switching supplier stop my smart meter working?
It shouldn’t in many cases, particularly with SMETS2. However, some households can see temporary loss of smart functions (like automatic readings) depending on meter setup and supplier systems. Ask the new supplier what to expect before you switch.
Can I get a smart tariff if my smart meter is in “dumb” mode?
Possibly, but it depends why it’s not communicating. Some tariffs require reliable automated readings. If your meter isn’t sending readings, you may need the supplier to fix connectivity or consider a meter exchange.
Are smart tariffs available for both gas and electricity?
Smart features can apply to both fuels (automatic readings), but time-of-use pricing is usually focused on electricity. Always check whether the tariff applies to one fuel or both.
I’m a tenant — can I switch to a smart tariff?
In most cases, yes, if you pay the energy bills and aren’t on an all-inclusive rent arrangement. If you’re unsure, check your tenancy agreement and confirm with your landlord/agent if any restrictions apply.
Trust, methodology and sources
Page ownership
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist (UK domestic energy)
- Last updated
- March 2026
How we assess “cheaper with a smart meter”
We treat “cheaper” as lower estimated annual cost for a household, based on:
- Unit rates (p/kWh) across any time bands (peak/off-peak)
- Standing charge (p/day)
- Usage level and shape (how much you use, and when you use it)
- Eligibility constraints (smart meter type, communications, payment method, region, consent for half-hourly data where required)
The scenario numbers on this page are illustrative calculations to demonstrate trade-offs. They are not a promise of savings and won’t match every supplier’s time bands or pricing structure.
Limitations: We cannot show every tariff variation on a static guide page. Your actual options depend on your address, meter setup, supplier availability, credit checks (where applicable), and current market pricing.
Ready to see if a smart tariff would actually be cheaper for you?
Compare smart and standard options using your postcode. We’ll help you focus on the numbers that matter: unit rates, standing charges and any key conditions.
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