Smart tariffs are electricity pricing plans that charge different rates depending on the time of day or type of usage. Some offer fixed low-cost periods, such as overnight hours for charging electric vehicles (EVs). More advanced smart tariffs use dynamic pricing, where electricity costs change every half-hour based on the wholesale market. These tariffs reward users who shift their energy consumption to off-peak times, potentially leading to significant savings while supporting a greener and more balanced electricity grid.

Smart tariffs can be cheaper than traditional flat-rate tariffs because they reward you for using electricity during off-peak hours, when demand (and prices) are lower. Some of the most innovative tariffs follow wholesale electricity prices, offering the biggest savings to households that can shift their usage dynamically. They’re especially cost-effective for people with electric vehicles, heat pumps, or battery storage, since these can be programmed to run when rates are lowest. However, smart tariffs aren’t the best fit for everyone. If most of your electricity use happens during peak hours, such as between 7-9am or 4-7pm, you could end up paying more. That’s why it’s worth using our calculator tool to see if a smart tariff is right for you!

Smart tariffs support the transition to a greener electricity system in three key ways: Shifting demand: They encourage households to use electricity during off-peak times, when energy is less carbon-intensive to produce. Enabling renewable energy: By rewarding flexible energy use, they help integrate variable sources like solar and wind into the grid more effectively. Reducing infrastructure costs: By lowering peak demand, they reduce the need for expensive new infrastructure, such as additional power lines and substations. Organizations like the Committee on Climate Change, the National Grid, and Citizens Advice agree that time-of-use tariffs are essential for creating a more flexible, cost-effective, and sustainable electricity system.

Yes, many energy suppliers offer special tariffs designed for EVs, solar panels, heat pumps, and battery storage systems. These are often time-of-use tariffs (or smart tariffs), where the cost of importing or exporting electricity changes based on the time of day. Choosing the right tariff can be complicated, which is why we’ve developed our smart tariff comparison tool to help you find the best option.

The amount you can save with a smart tariff depends on your unique electricity consumption and your current tariff. However, we estimate that most households can save up to 20-40% on their electricity bills by taking advantage of a smart tariff. The more flexible you are with how you use your electricity, the more money you can save.

Import and export tariffs refer to the prices you pay for electricity you use from the grid (import) and the money you earn for any electricity you send back to the grid (export). All UK households are importers - you buy electricity to power your home. But if you have solar panels, a battery, or another way to generate your own electricity, you can also become an exporter, selling excess energy back to the grid. So, "import" is what you pay for the electricity you use, and "export" is what you earn for the electricity you share. Read our article on electricity exports to find out more!

Octopus Agile prices follow the wholesale electricity market, on which generators bid to sell their electricity and energy suppliers buy the electricity they need to meet the needs of their customers. As with any market, high demand or a shortage of supply will cause prices to increase. A number of factors can cause demand to increase. For instance, the country uses more electricity in the evening when everybody comes home from work - that's why prices are typically highest at this time. There are other factors in play as well - Britain uses more electricity during times of colder weather, meaning prices tend to rise. Constrained supply can be caused by a number of factors. A major problem we all face is dull and still weather, which substantially reduces the output from wind and solar farms and forces us to be reliant on expensive gas powerplants. Supply can also be constrained when our nuclear power plants go down for refuelling or maintenance or there are other technical constraints. The worst price spikes tend to happen when high demand and supply constraints occur at the same time. This can cause prices to spike wildly, as energy suppliers scramble to purchase the electricity they need - a classic seller’s market. But don't worry - these periods are infrequent and don't last for long. So long as you can minimise using electricity during the few hours of a price spike, you won't come off too badly.

Octopus Agile prices follow the wholesale electricity market, on which generators bid to sell their electricity and energy suppliers buy the electricity they need to meet the needs of their customers. As with any market, high demand or a shortage of supply will cause prices to increase. Demand can decrease for a number of reasons. On any given day, demand is typically lower during the middle of the night and as result, electricity prices tend to fall. The weather and the time of year also has a significant impact - the country uses less electricity on a sunny summer’s day when the need for lighting and heating is less, so electricity prices are usually lower. However, the market is used to these seasonal and daily changes in demand and fluctuations in price are usually minimal. An excess of supply is typically the cause of the most wild price plunges. Overproduction from solar on a sunny summer’s day or a glut of wind power due to windy weather can flood the market with cheap electricity. This drives prices down to the single digits and in extreme cases leads to prices going negative - especially when over supply coincides with low demand. That’s because generation must always match demand to keep our electricity system stable. Because it’s expensive and wasteful to pay producers to curtail their production, consumers are instead paid to increase their consumption. Price plunges are a great way to use electricity at a super cheap price. Customers on Octopus Agile can charge their EVs for a fraction of the typical cost and it’s a great time opportunity to run that high temperature laundry load or the maintenance cycle on your dishwasher. While these spikes are somewhat infrequent, Agile users can generate serious savings by coordinating electricity intensive tasks with plunge pricing.

Time-of-use tariffs (also called smart tariffs) charge different rates depending on when you use electricity - cheaper during off-peak hours and more expensive during peak times. They can offer big savings if you're able to shift your usage to off-peak periods, especially if you have an electric vehicle, heat pump, or battery storage. SmartShift uses your actual smart meter data to model how you'd fare on different time-of-use tariffs, so you can see whether one would work for you before you switch.

The right tariff depends on your specific electricity usage patterns. If your current tariff doesn’t reflect when and how much electricity your household consumes, you could be paying more than necessary. SmartShift reviews your usage data against a comprehensive and frequently updated database of tariffs, including innovative smart and time-of-use options, to recommend the best fit for your home.

Yes, you need a smart meter to access smart tariffs, as these rely on half-hourly electricity pricing. Smart meters record and share this data with energy suppliers, enabling them to provide accurate pricing. If you don’t have a smart meter, you could be missing out on savings and getting the most from your smart devices. Installation is free, managed by your energy supplier, and includes an electricity meter (and gas meter, if needed), a communications hub, and an in-home display to monitor usage. Requesting a smart meter is easy—use SmartEnergyGB's tool to contact your supplier or reach out to them directly through their website. Still unsure? Learn more in our Insights article on smart meters.

If you do not already have a smart meter, or your existing smart meter is not working, you can request one for free from your energy supplier. Alternatively, you can find a lot of helpful information from Smart Energy GB, a not-for-profit organisation set up to facilitate the smart meter roll-out.