Millions of homes face major smart meter energy billing change

The shift is part of a major overhaul of the UK energy network designed to better manage electricity demand as more homes move towards smart meters, electric cars and renewable energy.

But experts warn many households still have no idea what the change actually means for their future bills.

The big change happening to UK electricity bills

Energy suppliers are gradually moving customers onto something called “half-hourly settlement”.

Instead of estimating electricity use across the day, smart meters record exactly how much electricity households use every 30 minutes.

Experts say the change could pave the way for far more flexible pricing – where electricity costs vary depending on the time of day energy is used.

And with the industry aiming for around 80% of meters to move onto the system by October, millions more households are expected to be affected soon.

Why your electricity could cost more at certain times

According to Utility Bidder, the biggest impact for consumers may be the growth of “time-of-use” tariffs. That means electricity could become cheaper during quieter periods – but more expensive during peak demand hours.

Experts say households able to run appliances outside busy evening periods may benefit most. But homes using lots of electricity during peak times could eventually face higher bills on some tariffs.

Madeleine Porter explained: “Consumers may increasingly see energy prices vary depending on the time of day they use electricity.”

The hours when electricity could cost more than double

One of the clearest examples is E.ON Next’s Smart Saver tariff, where households pay:

• 17.71p/kWh during off-peak hours (5am–4pm and 7pm–2am)
• Just 14.33p/kWh during “super off-peak” hours (2am–5am)
• But a huge 39.20p/kWh during peak hours between 4pm and 7pm

For comparison, the current standard electricity rate is around 24.67p/kWh.

That means running appliances during peak evening hours could cost more than double the cheapest overnight rate.

But households willing to shift how and when they use electricity could cut costs dramatically.

British Gas has also launched new “PeakSave” tariffs designed to tempt households into moving energy use away from peak demand hours.

Its new PeakSave Super Saturday tariff gives customers half-price electricity every Saturday between 9am and 5pm on a 13-month fixed tariff.

The supplier also runs its wider PeakSave scheme, where customers with smart meters on any British Gas tariff – including variable deals – can sign up for half-price electricity every Sunday between 11am and 4pm.

The appliances experts say could cost more during peak hours

Energy-intensive activities likely to become more important under future pricing systems include:

• EV charging
• Washing machines
• Tumble dryers
• Dishwashers
• Electric heating
• Cooking appliances

Experts say running these outside peak demand windows could eventually help reduce costs.

Why the UK is changing the system

The move is designed to help create a “smarter” electricity grid capable of handling growing renewable energy supplies.

Because renewable generation changes throughout the day depending on weather conditions, energy companies want more accurate real-time data on when electricity is actually being used.

Utility Bidder says the system could help:

• Reduce pressure on the grid
• Improve renewable energy use
• Encourage smarter energy habits
• Improve forecasting
• Build a more flexible energy network

The households most likely to benefit

Experts say people with flexible schedules may find it easier to shift energy use into cheaper periods.

That could especially benefit:

• Remote workers
• EV owners
• Smart home users
• Households already using off-peak tariffs

But some families may struggle to avoid peak usage times, particularly during evenings.

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The 4 things experts say you should do now

Energy specialists say households should start preparing for more dynamic pricing in the future.

Their advice includes:

1. Check your smart meter status

See whether your home already sends half-hourly usage data.

2. Review your tariff

Some suppliers already offer cheaper off-peak electricity deals, but check the small print.

3. Monitor when you use electricity

Smart meter apps can reveal expensive usage patterns.

4. Shift heavy electricity use where possible

Running appliances later in the evening or overnight could eventually become much cheaper.

Why energy bills could soon feel very different

The shift towards half-hourly settlement marks one of the biggest changes to UK electricity billing in years.

While supporters say it could help lower costs and modernise the grid, critics warn some households may find pricing structures more confusing – especially if peak-hour electricity becomes significantly more expensive.

For millions of homes, experts say the way electricity is charged may soon depend not just on how much energy you use – but exactly when you use it.