The pros and cons of smart meters: Are they any good?
Smart meters can help you track and budget your energy usage. We compare them to regular meters and consider whether it’s worth getting one.
Installing a smart meter could help you pay less for your energy, but not everyone is convinced by the technology.
While gas and electricity prices today are far below their peak during the 2022 crisis, energy bills remain much higher than they were before the pandemic.
Under the current Ofgem energy price cap, the average household will pay £1,755 annually for their energy, assuming they are on a variable two-fuel tariff and they pay by direct debit. The cap is in effect until the end of December.
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Ofgem has also confirmed that energy prices will rise at the start of 2026, as the price cap will marginally increase to £1,758 for the first three months of the new year – up 0.2% from the previous quarter (around 28p a month).
Smart meter pros and cons
If you currently have a regular meter, we explore whether you should make the switch to smart meters.
The pros of smart meters
It make your bills more accurate
One of the biggest benefits of a smart meter is that it could help make your bills more accurate. Smart meters send readings to your supplier on a daily or half-hourly basis, depending on what sort of deal you opt for.
This means that both you and your supplier will be able to calculate your energy usage as accurately as possible and make sure you only pay for what you use.
If you do not have a meter and do not send regular readings, your supplier will estimate your bills. This could mean you end up paying more or less than you have to and having to make up the difference later on.
While you can get your money back if you can show you've overpaid, it may take weeks or even months to come through. You could also underpay with estimated bills, which might lead to you having to fork out a hefty sum in the future.
You won’t face this issue if you have a smart meter.
It can help you keep better track of your usage
Another useful benefit is the in-house display you'll get alongside your smart meter. This small monitor will show you your energy use to the penny.
The gadget can help you figure out how energy-hungry your appliances are and what chores are costing you the most. It means you can shift your energy use to off-peak hours (typically weekends, working hours and overnight), and be greener, while cutting costs.
You do not need to send readings manually
Perhaps the simplest advantage of getting a smart meter is that the hassle of sending monthly meter readings is eliminated.
Often, energy meters can be located in hard-to-access areas of your home, meaning it can be difficult to send a meter reading. As a smart meter gets this information automatically you will no longer need to worry about sending readings manually.
When significant alterations to the Ofgem energy price cap occur, you won't have to send readings ahead of the changes to unit rates. It is still good practice to do so, as it will ensure you do not pay over the odds for your energy.
You may gain access to some better deals
As smart meters make it much easier for both you and your energy supplier to track your usage, they can open the door for you to get some types of tariffs that require more regular meter readings.
For example, if you own an electric vehicle, you will most likely need to have a smart meter that sends half-hourly readings to make the most of the off-peak rates in an EV tariff.
The cons of smart meters
The government had been aiming to offer a smart meter to every home by mid-2025.
However, the latest figures released by the Department for Energy Security and Net Zero (DESNZ) on 27 November 2025 showed 30% of homes were yet to have one fitted by the end of September 2025.
In total, over 40 million households in Britain now have a smart meter.
That's not to say all homes want one fitted. Many people have refused to get a smart meter due to concerns about the amount of insight this gives energy suppliers.
There have also been concerns around smart meters being targeted by hackers, but there is no evidence that this has happened.
Your smart meter could malfunction
For households with a smart meter, the biggest issue comes when the meter malfunctions.
Common issues included suppliers not receiving readings, the meters not displaying information to consumers, or both. Some have not been working because they haven't been commissioned properly at the point of installation.
Many of the other meters had malfunctioned because they were first-generation smart meters, and therefore couldn't connect properly to the centralised infrastructure that suppliers use to get readings. If you have a first-generation meter, you will need to get a new one installed.
Can you get compensation if your smart meter is faulty?
While Ofgem says 90% of the smart meters in Britain work as intended, errors and faults can occur.
At the moment there is no way to claim compensation if your meter breaks down. However, this is set to change if new rules proposed by Ofgem pass a consultation.
Ofgem’s proposal is that consumers with a smart meter should be entitled to £40 of compensation if their smart meter fails in particular ways.
This includes compensation if your smart meter fails due to a fault within the supplier’s control, and if it does not operate in smart mode and is not fixed within 90 days (including connectivity issues).
Compensation could also be awarded if you have to wait more than six weeks to get a smart meter appointment, or if you report a problem with your smart meter and the supplier does not provide a resolution plan within five working days.
If the rules pass the consultation, the regulator aims to have the new smart meter standards in place from early 2026.
Are smart meters compulsory?
Smart meters are not compulsory. You are not legally required to have one installed, so if your energy supplier offers you one, you can refuse. However, this might limit your access to energy tariffs, including cheaper time-of-use tariffs.
Do smart meters cost more?
Installing a smart meter will not make your energy cost more. The unit rate you pay for your energy will remain the same after you get a smart meter.
Consumers don’t normally have to pay to get a smart meter installed.
Smart meters allow you to better understand how much energy you’re using. Getting a smart meter won’t automatically lower your bills, but households with one are more likely to access some of the cheapest deals on the energy market.
For example, if you have enough flexibility to be able to shift your energy use to off-peak times of the day, you could reduce your bills. But the type of energy deal that allows you to access these cheaper rates requires a smart meter because it tracks wholesale prices on a half-hourly basis.
So, from a price perspective, it makes sense to opt for a smart meter. However, they may not be easy to install in certain homes – especially older properties. If you live in such a household, it may be best to stick with your existing meter.
Are energy bills falling?
Energy prices have soared in the past three years, but have started to come back down, though they are still much higher than pre-pandemic averages.
The price cap is set to increase by 0.2% in the first quarter of 2026, but they could fall after this.
Predictions made by energy consultancy Cornwall Insight, who are well-regarded for the accuracy of their price cap forecasts, expect the price cap will fall to £1,675 per year for the second quarter of 2026.
The fall is expected to come after chancellor Rachel Reeves announced in the Autumn Budget that the government would cut some eco levies that cost consumers around £150 a year.
These predictions should be taken with a pinch of salt, though, as it is incredibly difficult to predict energy prices so far in the future.
For more information on the future of the energy market, read our article on whether energy prices will go down.
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