What Is a Time of Use Meter? How It Works, Benefits and Disadvantages
Electricity bills in the UK have become more complicated than they used to be. Between standard meters, smart meters and now Time of Use tariffs, it’s easy to lose track of which setup actually saves you money. A Time of Use Meter is a smart electricity meter that makes time-based pricing possible, and it’s gaining attention among electric vehicle owners, solar panel owners, and anyone looking to cut their electricity bills. This guide explains exactly what a Time of Use electricity meter is, how it works, and whether it’s worth considering for your home.
What Is a Time of Use Meter?
A Time of Use Meter is a type of smart meter that records how much electricity you use in different time periods throughout the day, rather than charging a single flat rate no matter when you switch the kettle on. Because it tracks usage in short intervals, your supplier can charge different prices depending on whether you’re using electricity during a busy “peak” period or a quieter “off-peak” window.
How It Records Electricity Usage
A Time of Use electricity meter logs consumption automatically, typically every 30 minutes. According to Smart Energy GB, these half-hourly meter readings are what allow suppliers to work out how much to charge based on exactly when energy was used, rather than relying on manual or estimated readings. This data is sent automatically, so there’s no need to submit your own readings.
Time of Use Meter vs Time of Use Tariff
It’s worth separating the hardware from the pricing plan. The Time of Use Meter is the physical device that measures your electricity use in intervals. The Time of Use tariff is the pricing structure your supplier applies on top of that data, setting different rates for peak, off-peak, and sometimes shoulder periods. You need the meter to access the tariff, but having the meter alone doesn’t automatically put you on a time-based price plan — you still need to choose one with your supplier.
How Does a Time of Use Meter Work?
A Time of Use Meter divides the day into different pricing bands. The exact hours vary by supplier and region, but the general structure is fairly consistent across the UK market.
Peak Hours
Peak hours are when electricity demand is highest, usually in the early evening as households return home, start cooking, and switch on heating and appliances. Electricity is at its most expensive during these hours — often noticeably higher than a standard flat-rate tariff.
Off-Peak Hours
Off-peak hours fall overnight, and sometimes at weekends, when demand on the grid is much lower. This is when Time of Use tariffs offer their cheapest rates, which is why they’re popular for scheduling EV charging or running heavy appliances like washing machines and dishwashers.
Shoulder Periods
Some tariffs also include “shoulder” periods — times that sit between peak and off-peak, usually mid-morning or early afternoon. These are priced somewhere in the middle, reflecting moderate demand on the network.
How Electricity Usage Is Measured and Billed
Because the meter records your consumption every 30 minutes, your supplier can match each unit of electricity to the correct price band. Ofgem’s market-wide half-hourly settlement programme is designed to extend this kind of half-hourly billing across the whole market, with all domestic supply points expected to move onto half-hourly settlement by 2027. Your monthly bill then reflects a mix of peak, off-peak, and shoulder usage, rather than one flat rate applied to everything.
Time of Use Meter vs Standard Electricity Meter vs Smart Meter
Standard Electricity Meter
A standard (traditional) meter simply tracks total electricity usage over time. It doesn’t record when electricity was used, so every unit is billed at the same flat rate regardless of the time of day. These meters usually require manual readings or estimates.
Smart Meter
A smart meter automatically sends readings to your supplier, removing the need for manual meter readings or estimated bills. A basic smart meter records total usage, but it doesn’t necessarily break that usage down into detailed time bands for billing purposes — that depends on your supplier and the meter’s capability.
Time of Use Meter
A Time of Use Meter builds on smart meter technology by recording consumption in short, regular intervals — commonly every 30 minutes. This interval data is what allows a supplier to bill you differently depending on when you used electricity, rather than only how much you used in total.
Comparison Table
| Feature | Standard Meter | Smart Meter | Time of Use Meter |
| Automatic readings | No | Yes | Yes |
| Records usage by time of day | No | Not always | Yes, typically every 30 minutes |
| Supports Time of Use tariffs | No | Sometimes | Yes |
| Suits flexible usage (EV, solar) | No | Limited | Yes |
| Billing accuracy | Estimated/manual | High | Very high |
Benefits of a Time of Use Meter
Potentially Lower Electricity Bills
If you can shift a meaningful amount of your usage into off-peak hours, a Time of Use Meter can reduce your overall electricity costs compared with a flat-rate tariff, particularly for households with large, flexible loads like EV charging.
Cheaper Off-Peak Electricity
Off-peak rates on many current Time of Use tariffs sit well below the standard unit rate, making overnight charging, laundry, and dishwasher cycles noticeably cheaper than running the same appliances during the day.
Flexible Energy Usage
Because pricing changes throughout the day, a Time of Use Meter gives households more control over their bills. Rather than being locked into one rate, you can actively choose when to use power-hungry appliances.
Useful for Electric Vehicle Charging
EV charging is one of the biggest single loads in a home, and it’s also one of the easiest to schedule. Charging overnight during off-peak hours can make a noticeable difference to running costs compared with charging on a standard tariff.
Works With Solar Panels and Battery Storage
Homes with solar panels and battery storage can use a Time of Use Meter to their advantage — storing cheap off-peak grid electricity or self-generated solar power in a battery, then drawing on it during expensive peak hours instead of buying electricity at the higher rate. Ofgem has noted that smart meters, EVs and home batteries increasingly work together as part of a more flexible, demand-responsive energy system.
Disadvantages of a Time of Use Meter
Higher Peak Electricity Rates
The trade-off for cheap off-peak electricity is that peak-time rates are usually higher than a standard flat tariff. Households that use most of their electricity in the early evening could end up paying more overall.
Savings Are Not Guaranteed
A Time of Use tariff isn’t automatically cheaper — it’s a different pricing structure. Whether you save money depends entirely on how much of your usage you can realistically shift away from peak hours. Treat any specific savings percentage you see advertised with some caution, as actual results vary widely by household.
Requires Changes to Daily Routines
Getting the most out of a Time of Use Meter often means changing habits — running the washing machine overnight, delaying the dishwasher, or timing appliance use around the cheaper windows. Not everyone finds this practical or convenient.
Not Suitable for Every Household
Households that are home and using electricity mostly during peak hours — for example, families with young children, shift workers, or anyone with a fixed daily routine — may find it harder to benefit, and could end up paying more than on a standard tariff.
Tariff Prices and Times Can Vary
Peak, off-peak, and shoulder hours, along with the prices attached to them, differ from supplier to supplier and can change over time. It’s important to check the specific terms of a tariff rather than assuming all Time of Use plans work the same way.
How Much Can You Save With a Time of Use Meter?
Single-Rate vs Time-Based Tariff
On a single-rate tariff, every unit of electricity costs the same regardless of when it’s used. On a time-based tariff, the price swings between a lower off-peak rate and a higher peak rate. The more of your usage falls into the cheap window, the more you stand to save compared with a flat rate.
Illustrative Electricity Bill Example
The figures below are a hypothetical example only, not a quote or guarantee. Imagine a household that shifts EV charging and appliance use into off-peak hours, where rates can be significantly cheaper than the standard unit rate, while keeping only essential evening usage at the higher peak rate. Over a year, that kind of shift could meaningfully lower a bill compared with paying the same flat rate around the clock. The actual saving depends heavily on individual usage patterns and your supplier’s specific rates, so this example should be treated as a rough concept rather than a number you can expect to match.
Factors Affecting Savings
Savings depend on several things: how much electricity you use overall, how flexible your daily routine is, whether you own an EV or battery storage, the specific peak/off-peak rates your supplier offers, and the standing charge attached to the tariff.
Who Should Consider a Time of Use Meter?
EV Owners
Drivers who can charge overnight are among the biggest potential winners, since EV charging is a large, flexible load that fits naturally into off-peak hours.
Households With Flexible Energy Usage
If your household can comfortably run appliances like washing machines, tumble dryers, and dishwashers outside of the early evening, a Time of Use tariff can work in your favour.
Homes With Solar Panels or Batteries
Battery storage lets you buy cheap off-peak electricity (or store solar generation) and use it later during expensive peak hours, making Time of Use tariffs particularly effective alongside renewable energy setups.
Households Using Electric Heating
Homes with storage heaters or heat pumps that can be scheduled to run overnight may also benefit, since heating is often one of the largest components of an electricity bill.
How to Get a Time of Use Meter in the UK
Check Your Current Meter
Start by checking what type of meter you already have. Many modern smart meters (SMETS2) are capable of supporting Time of Use tariffs, while older or first-generation smart meters may not be.
Contact Your Electricity Supplier
Speak to your supplier about whether they offer Time of Use tariffs and whether your existing meter is compatible, or whether an upgrade or replacement is needed.
Check Smart Meter Compatibility
Not every smart meter can record the detailed, half-hourly data needed for accurate Time of Use billing. Confirm with your supplier that your meter meets the required specification before switching tariffs.
Compare Available Tariffs
Time of Use tariffs vary by supplier, region, and household type, so it’s worth comparing several options — looking closely at peak and off-peak rates, standing charges, and the length of the cheap-rate window — rather than switching to the first one you see.
How to Save Money With a Time of Use Tariff
Use Appliances During Cheaper Hours
Running washing machines, dishwashers, and tumble dryers during off-peak hours is one of the simplest ways to reduce costs under a Time of Use tariff.
Schedule EV Charging
Most EV chargers allow you to set a schedule, so charging can be timed to start automatically once off-peak rates kick in, avoiding the need to remember to plug in at a specific time.
Use Smart Appliances
Smart plugs and appliances with built-in timers make it much easier to consistently shift usage into cheaper periods without having to think about it every day.
Shift Electricity Usage Where Practical
Even small changes — like delaying a dishwasher cycle by a few hours or charging devices overnight — can add up over a year. The key is identifying which of your habits can realistically move without disrupting your routine.
Frequently Asked Questions
Is a Time of Use tariff suitable for every home?
No. It tends to suit households that can shift usage away from peak hours — such as EV owners or homes with solar and battery storage — more than households with fixed routines concentrated in the evening.
Can I get a Time of Use tariff with a standard meter?
No. Time of Use tariffs require a compatible smart meter capable of recording usage in intervals; a traditional meter cannot support this kind of billing.
What are peak and off-peak electricity hours?
Peak hours are typically in the early evening when demand is highest, while off-peak hours are usually overnight (and sometimes at weekends) when demand — and prices — are lower. Exact times vary by supplier, so check your tariff’s terms.
Are Time of Use meters cheaper?
Not automatically. They can lead to lower bills if you shift usage into off-peak hours, but they can cost more if most of your electricity use happens during peak times. Always compare your likely peak/off-peak usage split before switching.
Is a Time of Use Meter the same as a smart meter?
Not exactly. All Time of Use meters are smart meters, but not every smart meter records the detailed interval data needed to support a Time of Use tariff.
Conclusion
A Time of Use Meter records your electricity usage in detailed time intervals, allowing suppliers to offer Time of Use tariffs with different rates for peak, off-peak, and shoulder periods. The main appeal is the chance to lower your electricity bills by shifting usage — such as EV charging or appliance use — into cheaper off-peak hours. However, the savings aren’t guaranteed, and peak rates can be higher than a standard flat tariff, so a Time of Use Meter isn’t the right fit for every household.
Before switching, review your own daily electricity habits and compare several available Time of Use tariffs. If your routine allows for flexibility, or you have an EV, solar panels, or battery storage, a Time of Use Meter could genuinely reduce your bills. If your usage is concentrated in the evening with little room to change, it may be worth sticking with a standard smart meter tariff instead.