Ofgem delays smart meter reforms: what it means for your energy bills

Ofgem has announced a delay to the much-anticipated smart meter reforms that could save UK households a whopping £214m a year.

The change, which will require energy companies to adopt half-hourly meter readings, have now been pushed back to September 2025.

This is the fourth time Ofgem has pushed back the rollout of the 'market-wide half-hourly settlement' (MHHS) programme, saying more testing is needed.

So, what does this mean for your energy bills and how can you prepare?

What are smart meters and why do they matter?

Unlike traditional energy meters, smart meters let you track your energy usage in real time, so both you and your supplier know exactly how much you’re consuming.

Under the proposed changes, energy firms would have to tally up bills every half hour for all homes that have one of these smart meters, instead of updating bills less frequently.

What does this mean for your energy bills?

Right now, most households are subject to the Ofgem price cap, which is currently set at £1,717 per year for average energy usage.

Starting January 2025, this cap will rise to £1,738, adding an extra £21 to your annual bill.

The delay in smart meter reforms means many people may feel the pinch for longer as energy prices will not adjust as quickly as they could under the half-hourly settlement system.

How could half-hourly settlement save you money?

Ofgem says the half-hourly settlement system will help because of:

• Time of use tariffs: With the new system, households may be able to switch to tariffs that would for cheaper rates during off-peak periods, typically overnight. For instance, an Economy 7 tariff might offer a lower price for energy used at night.
• More efficiency: With more homes equipped with smart meters, energy companies can better predict demand. This would allow them to balance the grid more effectively, which could lead to lower overall costs.

Get help with your energy bills

Ofgem has said that no further delays are expected.

But in the meantime, if you’re struggling to pay for your energy bills, you might be able to get support.

The help you can get will depend on: 

• the type of energy you use 

• how you pay for your energy 

• if you claim benefits  

Reach out to your supplier 

Getting in contact with your energy supplier is the first step. Some suppliers provide grants if you’re struggling, or may be able to put you on a repayment plan for the money you owe.  

Priority services register 

Energy suppliers and network operators keep a priority services register.

You can ask to join the register if you’ve reached state pension age, are pregnant, have young children, or struggle with speaking or reading English.  

Joining the register will mean you can get a range of help and support including priority support in an emergency, regular meter reading services and help with reconnecting your gas supply.  

Grants for energy-saving home improvements 

You may be able to get help making your home more energy efficient, such as a installing a new boiler, insulation and improvements to your heating.

The different types of funding include:  

• the energy company obligation (ECO) scheme 

• the great British insulation scheme (GBIS) 

• the home upgrade grant scheme - if you don’t use mains gas to heat your home 

• the boiler upgrade scheme 

• the connected for warmth insulation scheme 

Household support fund 

The household support fund (HSF) offers financial help to people facing hardship. You might be able to get money towards food and energy costs.  

You can apply for the HSF through your local council.  

Warm home discount 

The warm home discount scheme is a one-off discount on your electricity bill.

If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid directly to you.

Winter fuel payment 

If you’ve reached state pension age and get certain benefits, you might qualify for the winter fuel payment.

If you’re eligible and under the age of 80, you’ll receive a one-off payment of £200. This rises to £300 if you’re over the age of 80.  

Fuel voucher 

If you can’t afford to top up your prepayment meter, you may be able to get a fuel voucher, which will add credit to your gas or electricity meter.

Contact your local council, food bank or Citizens Advice to find out more about fuel vouchers.  

For more information on steps to take if you’ve fallen behind with your gas and electricity bill payments, read our guide on what to do about energy arrears.