Smart Meters in the UK: Do They Actually Save You Money?

A smart meter replaces your traditional gas and electricity meters and sends automatic readings to your supplier via a secure wireless network (not your WiFi). This means accurate bills instead of estimates, and you can see exactly how much energy you're using at any moment on the In-Home Display. Smart meters also enable time-of-use tariffs, where electricity is cheaper at off-peak times — useful for charging electric vehicles or running appliances at night. All smart meters are now SMETS2 (second generation), which work across different suppliers if you switch.

The In-Home Display is where the real savings come from — if you actively use it. Start by noting your baseline daily spend. Then systematically turn things off and on to see what costs the most. You'll quickly discover that the tumble dryer, electric oven, and immersion heater are the biggest energy drains. Identify phantom loads (devices on standby) by checking your overnight energy use. Set a daily budget on your IHD and try to stay under it. Families who actively engage with their IHD save 5–10% on energy bills — double the passive average.

Smart meters unlock time-of-use tariffs where electricity costs different amounts at different times of day. Octopus Agile, for example, offers prices that change every 30 minutes based on wholesale costs — sometimes dropping to zero or even negative (you get paid to use electricity!). More stable options like Octopus Go offer a flat off-peak rate (usually 4–6 hours overnight) that's much cheaper for charging EVs, running dishwashers, and heating water. These tariffs require some lifestyle adjustment but can save 20–40% for households that shift consumption to off-peak hours.

Contact your energy supplier to request a smart meter — installation is free and takes about an hour. You can also request one when you switch suppliers. If you're a renter, you have the right to request a smart meter — your landlord cannot prevent it. Make sure you get a SMETS2 meter (ask the installer to confirm). Once installed, set up your In-Home Display in a visible location where you'll see it regularly — the kitchen or hallway works well. Connect it to your supplier's app for historical data and insights. Use SYM to track your monthly energy costs and see the trend over time.