One of the biggest household bills is for the energy we use… but there are ways to cut back the cost without reducing our usage, and a new report shows that more and more consumers are now doing just that.

Having wobbled around significantly over the last decade, the average domestic energy bill in the UK is currently around £150 a month. But that disguises major differences between individual users, largely dependent upon the size of the home, how energy-efficient it is, and how high we like to keep the thermostat.

A flat or one-bedroom house uses (on average) around £1,300 of energy a month according to Ofgem. By the time you get to a five-bedroom property, you’re up to over £2,500 a month.

It’s a monthly outgoing that most of us would like to see reduced… but how do we do that without sacrificing comfort?

A new study commissioned by leading energy suppliers reveals that Britain’s retail energy market is currently undergoing a rapid transformation, with millions of households now signing up for smart tariffs and other deals where they are rewarded for shifting their usage.

Their actions lower electricity system costs – and bills – whilst helping make the most of green power at those times when it is cheap and abundant… such as when the nation’s solar panels and wind turbines are collecting the most energy.

The new report is called “Beyond Tariffs: GB Household Flexibility Market Monitor”: produced by LCP Delta, it combines data from EDF, E.ON Next, Octopus Energy, OVO, and So Energy – between them covering 65% of the GB households.

The analysis reveals that 2.9 million households are now actively engaging with smart products that offer financial incentives for shifting energy usage. These products are generally available to anyone with a smart meter, often without having to change tariffs, and includes reward schemes for lowering demand during peak times, as well as products that offer periods of free or deeply discounted electricity.

You can charge my car…

One of the biggest shifts recently is the surge in consumer uptake of specialised Electric Vehicle (EV) charging propositions, which doubled year-on-year between 2024 and 2025, rising to 500,000 in 2025. Crucially, the new analysis points to a shift towards automation: over 300,000 customers now allow their energy supplier to manage their EV smart charging directly, with no need for them to work out what would be the cheapest time.

In these models, customers set the parameters (eg: “charge my car by 7 am”) and allow the supplier to manage the exact timing based on grid signals. In exchange for this “set and forget” convenience, households get market-leading rates whilst supporting Britain’s overstretched energy grid.

Growth in smart time-of-use tariffs

Aside from charging your car, there are plenty of other energy-hungry appliances in our homes that can, by making use of ToU (“time-of-use” tariffs), lop lumps off our bills. These tariffs offer customers with a smart meter cheaper power during off-peak times (when the grid is under less stress).

The report shows that 250,000 households switched to a smart meter-enabled ToU tariff between 2024 and 2025.

While the meter itself doesn’t cut costs automatically, the insights empower behavioural changes that lead to reduced bills. By providing real-time usage data through an in-home display (IHD), you can spot energy waste, turn off standby devices, and shift usage of energy-hungry appliances such as your washing machine, dishwasher or tumble dryer to cheaper off-peak times.

So what are the savings?

It is generally reckoned that, over the course of the year, smart meters can help you save around 3-4% on electricity and slightly less on gas.

The Energy Saving Trust suggests 5-15% savings in the first year with active IHD use… for many of us, a saving well worth making.

How resilient will YOUR savings be in retirement?

The RetireEasy LifePlan takes the guesswork out of any calculations, and (critically) factor in costs that may be specific to you, such as higher housing costs.

It is the most sophisticated online calculator available to UK consumers, allowing you to feed in all of your data in just minutes and then see at a glance precisely when you can afford to retire… and how much (on your current trajectory) you will be able to spend in each year of your retirement without running out of funds.

You can then run different scenarios to show the impact of a range of potential events in the future – for example, downsizing, receiving an inheritance, helping a family member, enjoying a major holiday or taking out a lifetime mortgage.

If the sums don’t add up, you can again check at a glance what alterations you need to make in order to get your plans back on track. Importantly, you can keep abreast of any changes beyond your direct control (for instance, in interest rates or inflation) by checking your plan on a regular basis.

All this for just a few pounds a month!