Smart meters are being rolled out to every home, farm and business in Ireland. And with the rollout of smart meters comes smart electricity tariffs. But what is a smart tariff and can they help us reduce our energy costs?
After a fair few delays and false starts, ESB Networks began rolling out smart electricity meters in 2019 under the direction of the Commission for Regulation of Utilities (CRU) - Ireland's independent energy regulator.
The plan is to have every premise in Ireland upgraded to a smart electricity meter by the end of 2025.
And with the rollout of smart meters comes the launch of smart electricity tariffs.
Here we explore everything you need to know about these tariffs, but before we jump in, let’s have a brief reminder of what a smart meter is.
What is a smart meter?
A smart meter is an electronic device used for recording a building’s electricity consumption.
A smart meter will automatically send data on your electricity usage to your energy supplier once a day, which eliminates the need to submit meter readings. And if you want, you can choose to send data to your supplier every 30-minutes, which will allow you to receive near up-to-the-minute information and detailed insights about your electricity consumption. Getting this information will let you know which appliances are costing you the most to run and potentially help you save money.
How does a smart meter work?
A smart meter has a small transmitter and antenna, similar to what you would find in a mobile phone, and uses mobile phone technology, specifically the older and widely available 2G network, to send data on your energy usage to your supplier.
What are the benefits of smart meters?
If you get a smart meter installed, you’ll experience a range of benefits.
These include:
- Reduced energy consumption
- A lower carbon footprint
- Not needing to submit meter readings
- Access to better information on your energy bills
- Better customer service
- More flexible options if you’re a prepay customer
- More tariff options
You can learn more about these benefits in our guide on what a smart meter is.
What is a smart tariff?
At the moment energy suppliers usually charge you the same price for your electricity throughout the day (although those with a night saver meter will be charged a separate night time rate).
A smart tariff charges you different prices for your electricity at different times throughout the day or week. It is sometimes referred to as a time-of-use tariff.
Prices are usually highest during peak-time hours when electricity demand is high and is more expensive to generate. Whereas they're cheaper at off-peak times, especially at night or during the weekend, when there is less demand for electricity and less pressure on the grid.
In other words, with smart tariffs the price you're charged for your electricity aims to more accurately reflect the actual cost of generating it at any given time with the aim of encouraging households to move their electricity consumption to times when there is less pressure on the grid or an abundance of renewable energy.
Smart tariffs also provide useful insights into how you use your electricity.
There are several different types of smart tariffs available.
What are the main types of smart tariffs?
Standard smart tariff (SST)
This is the main type of smart tariff.
It charges you a different rate for your electricity depending on whether you are using it at peak, off-peak, or night-time hours. These hours are:
- Peak time (5pm - 7pm): This is when electricity is the most expensive to use.
- Night time (11pm - 8am): This is usually the cheapest time to use electricity.
- Off-peak time: During these remaining hours, electricity is cheaper to use than during peak times though not as cheap as night time.
By law, all energy suppliers must offer their customers at least this type of smart tariff.
Electric vehicle (EV) smart tariff
As the name suggests, these tariffs are aimed at those with an electric vehicle.
They offer a super-low electricity rate, usually between the hours of 2am and 4am, when people can charge their cars. Though if you want you can set timers to use other appliances during these hours too.
Most, but not all suppliers, now offer an EV smart tariff.
A 'weekender' smart tariff
These smart tariffs offer cheaper electricity at certain times during the weekend. And with some plans, electricity may even be free during certain hours.
While the lure of free electricity sounds great, the flip side is that electricity used at other times during the week will be slightly higher than what you'd usually be charged. So this type of plan may only be suitable if you're happy to spend your weekends doing lots of cooking, cleaning and drying or charging an EV etc.
Dynamic smart tariff
A dynamic smart tariff is a type of tariff where the price of electricity varies throughout the day based on the price of electricity on the Irish wholesale market. It’s like a more advanced form of a standard smart tariff.
With a standard smart tariff, the price of your electricity changes depending on whether you’re using your electricity at peak, off-peak, or night-time hours as outlined above. So you have three prices that you will be charged. But these are set prices that won’t change regularly. Perhaps only every few months, if at all, during the term of your contract.
But with a dynamic electricity tariff the price for your electricity will change every half hour in line with price changes in the wholesale electricity market. For this reason, dynamic pricing is often referred to as “real-time pricing”.
From October 2025 all the main energy suppliers will be required to offer a dynamic smart tariff.
You can learn more about dynamic electricity tariffs here.
Smart 24
This type of smart tariff charges you the exact same rate for your electricity throughout the day and night. It doesn't change. So similar to a normal electricity plan that you would be accustomed to.
However it also give you lots of information and insights into when you're using your electricity and what certain devices are costing you to run. This is usually provided through your supplier's app.
Once you have this information, you can then decide if you would save money by moving to one of the other types of smart tariff listed above.
People often find this type of tariff a good introduction to smart tariffs.
When can I sign up to a smart electricity tariff?
You'll need to have a smart meter installed before you can sign up to a smart tariff.
Once the installation is complete, you should be able to sign up to a smart tariff almost immediately, though in some cases you may have to wait up to 30 days in order to give ESB Networks time to start communicating securely with your meter. You’ll need to have your MPRN on hand to switch to a smart meter tariff.
You'll also need to give explicit consent to have your data shared with your energy supplier before you can get the full benefits from your smart meter. So if you have one installed, chat to your supplier to check it's turned on.
The potential of smart tariffs
The rollout of smart electricity meters in Ireland has the potential to be a game-changer for Ireland’s energy customers and suppliers alike.
For customers, the ability to monitor consumption in near real-time could help many households improve their energy efficiency, lower their carbon footprint and reduce their bills.
Smart meters should also bring peace of mind when it comes to energy costs, as well as the convenience of not having to submit meter readings manually.
However, to reap the full benefits of smart meters and tariffs, smart tools and apps and online services will also need to be rolled out by suppliers to help customers view and understand their energy usage better - and this is still in its infancy.
Switch and save
Whether or not you have a smart meter remember that a quick and easy way to save on your bills is to switch supplier with bonkers.ie.
We compare all tariffs, both smart tariffs and normal tariffs, across all suppliers in the market and can help you sign up to a new deal in just minutes.
Head over to our price comparison service here and start saving today.
Learn how to reduce your energy consumption
If you don’t feel like switching suppliers but want to save, here’s a list of helpful articles that will help you reduce how much you spend on your monthly household bills.
- By simply adjusting your habits around the home, you could become more energy-efficient. Take a look at these 16 ways to use electricity and save money.
- Working from home can have a significant impact on your energy, broadband and mobile costs. We’ve compiled a list of 12 ways to save money while working from home.
- Have you considered retrofitting? Improving your home’s energy efficiency not only helps you to reduce your carbon footprint but also means you can save a huge amount on your energy bills. Here’s an overview of finance options and available grants if this is something you’re interested in.
