POWERBASE.ENERGY · CONSUMER GUIDE Published April 2026 · 7 min read
Over 70% of UK homes now have a smart meter - but plenty of people still aren't sure whether they actually help, who qualifies for one, and what the new rules mean for them. This guide cuts through the marketing and gives you the facts, including the bits the energy companies don't always shout about.
A smart meter replaces your old gas or electricity meter and sends readings to your supplier automatically every 30 minutes. That means no more estimated bills - you only pay for energy you actually use. Most smart meters come with a small In-Home Display (IHD) so you can see your consumption in real time, which helps you spot where you're spending the most.
There are two generations: SMETS1 (older, installed before around 2019) and SMETS2 (the current standard). If you have a first-generation meter, it's likely already been connected to the national network and should now behave much like a newer one. Any meter installed today will be SMETS2.
Accurate billing is the most universal benefit. Estimated bills - where suppliers guess based on your past usage - are gone. You pay for what you actually use. That alone resolves one of the most common complaints about energy suppliers.
Access to smarter, cheaper tariffs is where it gets more interesting. Smart meters unlock time-of-use tariffs, where you pay less during periods of lower demand - typically overnight. If you can shift some usage to those windows (running the dishwasher at midnight, charging your EV after 11pm), the savings are real. Some overnight smart tariffs offer electricity as low as 7–8p/kWh, compared to around 25p/kWh during peak hours. EV owners using these tariffs routinely save several hundred pounds a year on charging alone.
That said, if your household runs on a fixed routine and you can't easily shift when you use energy, time-of-use tariffs won't move the needle much. A standard flat-rate tariff may still suit you - and your smart meter remains useful for accurate billing regardless.
The In-Home Display matters more for some households than others. If you actively use it to monitor usage and adjust habits, evidence suggests it can help reduce consumption by a few percent. If it goes in a drawer after the first week, it won't make much difference.
The key word is automatic. You shouldn't need to argue your case or submit a formal complaint - the payment should be applied to your account. Ofgem is also working on a further rule covering smart meters that stop working in smart mode and remain unfixed after 90 days, expected later in 2026.
This matters because the biggest frustration with smart meters has never really been the technology itself - it's been long waits for installation and sluggish responses when things go wrong. These new rules put real financial pressure on suppliers to improve.
Check your bills. If you believe you're owed a £40 payment and it hasn't appeared, contact your supplier first. If that doesn't resolve it, escalate to the Energy Ombudsman.
By October 2026, all smart meters must record and submit half-hourly data as part of the Market-wide Half-Hourly Settlement (MHHS) programme. For most people this will happen invisibly, but it's the infrastructure that makes the next wave of flexible tariffs possible - and it will eventually benefit millions more households.
If your meter isn't currently sending automatic readings, contact your supplier to get it reconnected before this deadline.
Get one without hesitation if: you have a standard household setup. Installation is free, you'll get accurate bills, and you won't be locked out of better tariffs in future.
Get one urgently if: you have an EV, a heat pump, or solar panels. These are the households that gain most from time-of-use tariffs, and without a smart meter you simply can't access them. EV owners in particular are leaving real money on the table by staying on flat-rate tariffs.
Concerned about data privacy? Smart meters only send your energy consumption data to your supplier — not what individual appliances you're using. You can also ask your supplier to reduce the frequency of readings from half-hourly to daily or monthly, though this limits your tariff options.
If you rent: if you pay your energy bills directly (rather than your landlord including them in rent), you can request a smart meter. Your landlord cannot prevent this.
Contact your energy supplier directly - by phone, app, or your online account. Installation is free and typically takes one to two hours. You'll need to be home for the appointment.
Under the new 2026 rules, if your supplier can't book you in within six weeks, they owe you £40. Ask for a specific appointment date and keep a record of the conversation.
Already have one that isn't working properly? More than 900,000 previously non-operating smart meters have been repaired or replaced since Ofgem began its compliance programme. If yours isn't sending readings automatically, contact your supplier and ask them to reconnect it to the national network. If they don't give you a resolution plan within five working days of you reporting the fault, you're owed £40 - automatically.
Smart meters are worth having for most households, and 2026 is a better time to get one than ever. New consumer protections mean the installation experience should be faster and more reliable, and the shift to half-hourly settlement is opening up a new generation of flexible tariffs that could make a real difference to your bills.
The savings case is strongest if you have an EV, a heat pump, or solar panels. But even without any of that, ending estimated bills and having real-time visibility of your usage is a genuine upgrade.
If you'd like help comparing smart tariffs for your household, the team at PowerBase.Energy is happy to help - no obligation, no hidden fees.