Adoption of smart time of use (ToU) tariffs rose by over 75% in the last year, according to Ofgem's state of the energy market report: retail, published on 15 April 2025. The regulator attributes the increase to rising electric vehicle ownership and to households seeking more innovative and cost-effective energy options1.
The report sets the tariff trend against a higher price cap. The current price cap for average households on dual fuel Direct Debit increased to £1,849 in April 2025 due to higher wholesale costs1. Consumer debt and arrears reached a record high of £3.85 billion in quarter 4 2024, and switching activity is rising but still below pre-crisis levels1.
On the metering that time of use tariffs depend on, Ofgem reports that smart meters have been installed in 65% of homes and 61% of businesses, with 90% of these meters operating in smart mode1. The regulator said it is undertaking compliance action with energy suppliers to reduce the number of smart meters not operating in smart mode1.
"Smart time of use (ToU) tariff adoption has increased by over 75% in the last year, because of rising electric vehicle ownership and people looking for more innovative and cost-effective energy options."
The report also covers supplier numbers and satisfaction. There are 23 domestic energy suppliers and 72 business energy suppliers currently active in the market, with six large companies holding 91% of the domestic market and Octopus now the largest electricity supplier and second largest gas supplier in Great Britain1. Domestic complaints are at their lowest since 2022, 81% of customers are satisfied with their supplier, the highest level recorded in the survey, and prepayment meter customers' satisfaction has matched Direct Debit customers' for the first time1.
| Measure | Figure |
|---|---|
| Rise in smart time of use tariff adoption, last year | Over 75% |
| Homes with a smart meter installed | 65% |
| Businesses with a smart meter installed | 61% |
| Installed smart meters operating in smart mode | 90% |
| Price cap for average dual fuel Direct Debit households, April 2025 | £1,849 |
| Consumer debt and arrears, quarter 4 2024 | £3.85 billion |
Why it matters for households
A time of use tariff prices electricity differently depending on when it is used, so the value a household gets from one depends on being able to shift demand, for example charging a car or running appliances outside peak hours. The reported growth is concentrated around electric vehicle ownership, which suggests the households adopting these tariffs are largely those with a large, movable load. For a home without that, the benefit is less clear from the figures alone.
The metering figures matter because time of use pricing depends on a smart meter that is actually communicating. Ofgem reports that 90% of installed smart meters operate in smart mode, and that it is taking compliance action on the remainder1. A meter that has lost smart functionality cannot support half-hourly settlement of the kind these tariffs rely on.
The wider context is cost. With the price cap at £1,849 for average dual fuel Direct Debit households and debt and arrears at a record £3.85 billion1, the appeal of any tariff that lowers a bill is obvious, but the report does not give average savings for time of use customers, and no such figure has been reported.
What happens next
Ofgem said it aims to publish the state of the market report every six months1. The report also states that Ofgem is undertaking compliance action with energy suppliers to reduce the number of smart meters not operating in smart mode1. No completion date for that action is given in the report.
Sources1 cited
- State of the energy market report: retail | Ofgem, ofgem.gov.uk