Smart meters may help you stick to your budget in April as gas and electricity prices rise
After contrasting them with standard meters, we evaluated if purchasing one would be worthwhile.
At the beginning of 2025, energy bills went up, and in April, they are expected to go up even more.
Consumers will suffer a significant setback when the Ofgem energy price cap increases by 63.4 percent starting in April 2025.
Although not everyone is persuaded by the technology, installing a smart meter could help you lessen the impact of this hike and save money on your energy bills.
Although smart meters can assist you in closely monitoring your energy consumption and reducing your expenses, do they actually perform as advertised? They send readings to your supplier on a regular basis.
We examine if you should switch from your current regular meter.
Benefits of smart meters: Are they good?
A smart meter's potential to improve the accuracy of your bills is its primary advantage. Your supplier will receive readings from it either every day or every half hour, depending on the type of agreement you choose.
To sign up for off-peak tariffs, such as EV tariffs, or to participate in energy-saving events, for instance, you will need to have half-hourly readings. These events/tariffs may result in cost savings for you.
You won't have to manually send your supplier meter readings like you would with a conventional meter thanks to your smart meter. Should you fail to submit readings on a consistent basis (i.e. E. Your supplier will provide you with an estimate of your bills at least once every month. You might wind up paying more than you need to because of this.
The internal display that comes with smart meters is another practical advantage. You can see your energy usage down to the last penny with this tiny monitor.
You can use the device to determine which habits and tasks are costing you the most money, as well as how much energy you use when you turn on specific appliances. That means you can lower your bills by modifying your usage.
You can be greener by changing how much energy you use. Generally speaking, the national grid depends more on renewable energy production during off-peak hours, which are weekends, business hours, and overnight. In contrast, there is typically a greater reliance on fossil fuels during peak periods, particularly in the winter.
Lastly, a smart meter can simplify the process of switching. It implies that after you move, you won't need to give your previous supplier a final reading. Nevertheless, it's always a good idea to write down any issues that may arise with the automated readings.
If there are major changes to the Ofgem energy price cap, you won't need to send readings before the unit rates change. This is still a good practice, though, because it will guarantee that you don't overpay for your energy.
What are a smart meter's drawbacks?
The goal of the government was to provide smart meters to all households by the middle of 2025. However, according to data published on March 20, 2025, by the Department for Energy Security and Net Zero (DESNZ), 34% of homes still lacked one.
The most recent government data shows that the rate of domestic installations increased to 710,000 in the third quarter of 2024, up 20.9 percent from the previous quarter and 16 percent from the previous year.
However, not every home wants one installed. Because of worries about the amount of information that smart meters provide energy suppliers, many people have declined to purchase one. Although there is no proof that this has occurred, there have also been worries about hackers targeting smart meters.
In homes with smart meters, the most significant problem arises when the meter breaks down. Four and a half million smart meters were malfunctioning by March 2024, according to government data. This was more than the three million broken devices that were reported the year before. This might be an underestimate, though, according to data from MoneySavingExpert.
Frequently encountered problems included either the meters not showing information to customers, suppliers not receiving readings, or both. Some have not been functioning as a result of improper commissioning at the installation site.
Since they were first-generation smart meters, many of the other meters had broken and were unable to connect to the central infrastructure that suppliers use to obtain readings. You will need to have a new meter installed if yours is a first generation meter.
Are smart meters required?
Smart meters are not required. The installation of a smart meter is not mandated by law. You have the option to decline a smart meter offer from your energy provider. But without a smart meter, you may not have as much access to energy tariffs, such as lower time-of-use tariffs.
Traditional meters' advantages.
Many opt to stick with conventional meters. Their desire to maintain control over the data they provide to their energy provider may be the reason for this.
It might also depend on the kind of meter you're using. If your household uses only one fuel, for instance, economy 7 and economy 10 meters have lower rates than standard meters. Few suppliers still provide tariffs for these meters, and most no longer fit them.
It won't cost any more than a smart meter if your meter is reachable and you're willing to send in readings each month, though you won't receive the same usage insights.
Traditional meters' drawbacks.
Traditional meters have the drawback that you might not be able to regularly submit readings to your supplier if your meter is difficult to reach. Since your supplier will have to rely on estimates rather than your actual usage data, you might wind up paying more than you need to in this case.
Although it might take weeks or even months to process, you can get your money back if you can prove that you overpaid. Also, you might underpay when using estimated bills, which could result in future large outlays.
How much do smart meters cost?
It won't increase your energy costs to install a smart meter. Getting a smart meter will not change the unit rate you pay for your energy.
Installing a smart meter is typically free of charge for consumers.
With the help of smart meters, you can gain a better understanding of your energy usage. While smart meters don't always result in lower bills, they do increase a household's chances of finding some of the best energy market prices.
One way to lower your bills is to move your energy use to off-peak hours of the day if you have the flexibility to do so. However, because the energy deal that gives you access to these lower rates tracks wholesale prices on a half-hourly basis, it necessitates a smart meter.
Therefore, choosing a smart meter makes sense when considering cost. However, some homes, particularly older ones, might find it difficult to install them. Keeping your current meter may be the best option if you live in such a household.
Are energy costs increasing?
Over the last three years, energy costs have skyrocketed. They rose by 27% in October 2022 and 54% in April 2022 compared to the previous quarter. Energy costs hundreds of pounds more now than it did in 2019, even though prices have dropped from their peak.
To the dismay of billpayers, energy regulator Ofgem raised the energy price cap by 1.2 percent for the first quarter of 2025 at the beginning of the year. The cap will rise again for the second quarter of 2025.
Between April and June, the average household with a dual fuel tariff that pays by direct debit will see an increase in energy bills of an astounding 1,849 annually.
You will pay more if you use more energy than the typical household because the price cap is a limit on unit rates. You'll save money if you use less.
On May 27, the price cap for July through September will be examined and revised.
A period of respite may be imminent, according to energy consultancy Cornwall Insight, which is renowned for its accurate forecasts. The company projects that energy bills will decrease by 5% in the third quarter of this year.
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