No, smart meters do not use more electricity than old meters. A smart meter’s display unit uses about 1–2 watts of power, costing roughly £2–£4 per year based on the UK average electricity price of 27p/kWh (Ofgem price cap, January 2025). An old-style meter uses negligible electricity itself—typically less than 0.5 watts for the mechanical register—so the difference is about £1–£2 extra per year at most.
To put that in context:
- A smart meter’s annual electricity cost of £2–£4 is equivalent to running a single LED lightbulb for about 10 hours per week.
- The average UK household spends £1,800 per year on electricity (Energy Saving Trust, 2024). The smart meter’s share is 0.1–0.2% of that.
- Smart meters save the average household £100–£200 per year by reducing energy waste through real-time feedback (Which?, 2023).
When this matters more: if you have a prepayment meter or live in a poorly insulated home, the savings from better energy awareness can be larger, easily outweighing the tiny extra cost. When it does not matter: if you already monitor usage closely, the difference is so small it will not affect your bill.
Bottom line: A smart meter uses about £2–£4 of electricity per year, but typical savings from using it correctly are 50–100 times that amount. The extra electricity is negligible compared to the waste it helps you avoid.
Sources
A worked example
A typical 1930s semi-detached home in Manchester with gas central heating uses around 12,000 kWh of gas and 3,500 kWh of electricity per year. After installing a smart meter and using the in-home display to cut standby power and reduce heating waste, the household saves £180 per year on energy bills. The smart meter itself costs just £3 per year to run, based on the January 2025 Ofgem price cap of 27p per kWh. Over 25 years, the total savings reach £4,500, even after subtracting the meter’s running cost. The Energy Saving Trust confirms that smart meters help people reduce consumption by 5 to 10 percent on average.
| Item | Figure |
|---|---|
| Upfront cost after grants | £0 (installed free by supplier) |
| Yearly savings | £180 |
| Payback period | Immediate |
| 25-year lifetime savings | £4,500 |
What homeowners often get wrong
The most common mistake is believing the smart meter display uses as much power as a small appliance like a router or a TV. Here are three frequent errors that cost UK households money or lead to missed opportunities.
- Assuming the display must stay plugged in 24/7 The misconception is that the in-home display has to run constantly to send data to your supplier. In reality, you can switch it off or unplug it without affecting meter readings — the meter itself still sends data automatically. Keeping it on costs £2 to £4 per year, but switching it off saves nothing meaningful while losing the real-time feedback that drives £100–£200 in annual savings.
- Thinking smart meters still need manual readings Some people believe they must still submit meter readings because the smart system might fail. The truth is that a properly functioning smart meter sends readings automatically every 30 minutes via the DCC network. If you keep submitting manual readings, you waste five minutes per month — about one hour per year — for no benefit. Check your supplier’s online portal to confirm your smart meter is working.
- Believing the display uses more power than an old meter’s spinning disc The misconception is that the old mechanical meter’s spinning disc uses no electricity at all. In fact, old meters still consume about 0.5 watts for the register mechanism. The difference between old and smart is only 1 to 1.5 watts — less than running a single LED bulb. Worrying about this tiny gap stops people from getting a free smart meter that can save £180 per year.
Quick reference
- A smart meter’s in-home display uses 1 to 2 watts of power, costing £2 to £4 per year at the January 2025 Ofgem price cap of 27p per kWh.
- An old-style meter uses roughly 0.5 watts, so the extra cost of switching to smart is just £1 to £2 per year.
- Smart meters are installed for free by your energy supplier, and no upfront payment or grant application is required.
- Typical savings from using smart meter data are £100 to £200 per year, which is 50 to 100 times the running cost.
- If you already monitor your usage closely, the tiny extra electricity cost of a smart meter will not affect your bill.
Frequently Asked Questions
No, smart meters do not use more electricity. A smart meter's display uses 1–2 watts, costing about £2–£4 per year, while an old meter uses less than 0.5 watts. The extra cost is just £1–£2 annually, which is negligible compared to typical yearly savings of £100–£200 from reduced energy waste.
A smart meter costs roughly £2–£4 per year to run, based on the UK average electricity price of 27p/kWh under the Ofgem price cap as of January 2025. This is equivalent to running a single LED lightbulb for about 10 hours per week.
Yes, smart meters can save the average UK household £100–£200 per year by providing real-time feedback on energy usage, according to Which? (2023). This far outweighs the tiny £2–£4 annual running cost, especially for homes with prepayment meters or poor insulation.
Yes, smart meters are particularly beneficial for UK homes with prepayment meters, as they help avoid emergency credit and provide better energy awareness. The savings from reduced energy waste can be larger in these cases, easily offsetting the minimal £2–£4 annual electricity cost.
No, smart meters do not increase your electricity bill significantly. Their display uses only £2–£4 of electricity per year, which is about 0.1–0.2% of the average UK household's £1,800 annual electricity spend. The savings from using the meter to cut waste are typically 50–100 times greater.
