While smart meters are a handy way to save money on your energy bills, it turns out millions across Great Britain may not actually work.
According to official figures, there have been a number of issues with the nationwide smart meter rollout, with as many as 3.5 million currently operating in ‘dumb’ mode, unable to send energy usage information.
Although firms are fined if they fail to meet targets for installing new smart meters, those targets don’t take into account whether a meter is actually working.
Following increasing calls from campaigners to tackle the issue, the Government has today launched a consultation into how suppliers can drive ‘improved rates of meter operation’ going forward, with the aim of creating a new ‘Consumer Charter’ guide laying out what’s expected.
Ofgem has also confirmed proposals which will require energy companies to urgently fix broken devices — and to issue £40 automatic compensation to anyone who waits 90 days or more for a repair.
Under the regulator’s plans, customers will also receive a payout if their smart meter installation fails due to a fault within their provider’s control.
Amid government targets for three-quarters of all homes to use one by the end of this year, Uswitch research shows up to 1.4 million households in England, Wales and Scotland have waited six months or longer for their broken meter to be fixed.
However, this new proposal will mean anyone who requests a new meterwill have to be offered one within six weeks, while suppliers will be required to provide a resolution plan to those who report problems with their device within five working days.
Tim Jarvis, director general for markets at Ofgem, said: ‘We’re drawing the line on excuses – suppliers will need to follow our new rules or compensate their customers.
‘We know that many customers are still waiting too long to get a smart meter installed or facing lengthy delays on repairs when it stops working.
‘That’s why we’re stepping in to make the process quicker and easier for consumers and to make sure they’re fairly compensated if things do go wrong.’
What is smart meter ‘dumb mode’
According to Smart Energy GB: ‘‘Dumb mode’ is sometimes used to describe when smart meters are not automatically sending meter readings…
‘If your smart meter is in “dumb mode” or isn’t sending regular meter readings, it will still be measuring your energy use, but it won’t send that information automatically to your energy supplier.
‘To get accurate bills, you will need to take manual readings and share them with your supplier. You will need to take regular readings until the issue is solved, and your smart meter can send readings automatically again.’
Martin Lewis previously discussed the topic on his podcast with Octopus Energy boss Greg Jackson, who claimed repairs were often not prioritised because fixing existing smart meters doesn’t count towards the targets.
Commenting on the news of this new industry review, the Money Saving Expert (MSE) founder wrote: ‘Broken smart meters were high on the list of issues I raised with Ed Miliband when he first became Secretary of State. He promised me he’d investigate, so I was pleased when they told me this announcement was coming.
‘Far too many smart meters, likely one in five, don’t work as they should – a problem not just for all the homes with broken ones, but for the smart meter rollout. With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one.
‘We need to shift firms’ focus from just installing smart meters to promptly fixing those that are broken.’
Ofgem’s rules are expected to come into force next year, and while exact details have yet to be released, the regulator has revealed that anyone whose meter has been in dumb mode for over 90 days will receive the £40 payment automatically, without having to complain.
If the problem affects both your gas and electricity meters, you’ll get the £40 for each of them, meaning the total amount you’ll receive is £80.
Miatta Fahnbulleh, the UK Minister for Energy Consumers, commented: ‘We welcome Ofgem’s proposals to introduce guaranteed standards of performance for smart meters.
‘This will help to ensure people who want to upgrade their meters are better supported through the process, and can make the most of their new smart meter.’
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