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 reward those who consume most of their electricity—or can shift their usage—to off-peak hours. The most innovative tariffs, which track wholesale electricity prices, often offer the greatest savings. These are particularly advantageous for people with electric vehicles, heat pumps, or battery storage, as these devices can be programmed to import (or export) power when rates are most favorable. However, smart tariffs aren’t cheaper for everyone. For households with gas heating or those whose electricity use is concentrated during peak times—such as cooking with an electric hob or oven between 4-7pm—costs could be higher. Use 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 feel 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.

"Electricity imports and exports" might sound complicated, but it just means the electricity you buy from the grid and the electricity you sell back to it. Right now, all UK households that use electricity are importers, meaning they buy power from the grid. But if you have solar panels or a battery, you can also become an exporter, selling the electricity you generate back to the grid and earning money. Import and export tariffs are simply the prices you pay for electricity you buy or the money you receive when you sell it back. Read our article on electricity exports to find out more!

Yes, you can only switch to a smart tariff if you have a smart meter installed by your energy supplier. This is because smart tariffs rely on being able to change electricity prices every half hour, and smart meters are the only ones that can track and send this data back to the supplier. Having a smart meter also brings other benefits: you won’t need to send in meter readings or deal with estimated bills, and you’ll get detailed information about your electricity use, broken down by the hour, day, month, or year.

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.