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Energy firms are offloading 'dumb' smart meters: make sure you don't get stuck with one
Households will still receive smart meters that cease to work after a change of energy supplier despite a crucial deadline on installations having passed, Telegraph Money has learned.
Consumers have been warned that it will be down to them to request the most modern meter to avoid future problems.
Yesterday marked the official end to installations of first-generation smart meters, known as “Smets 1”, and the dawn of the new “Smets 2” breed. But at least four of the biggest energy suppliers will still provide the former, even though such installations will no longer count towards their government smart meter targets.
Smart meters are touted as an energy-saving device, giving households the ability to track their usage in real time and, theoretically, reduce it. But most Smets 1s, of which there are almost 12 million, lose crucial functions if a customer switches supplier.
The new version connects to a national communications network and fixes these problems, according to the Government.
Energy firms were meant to move to installing only Smets 2 smart meters from March 15 but this newspaper has learned that suppliers including Scottish Power, SSE, British Gas and E.On will still install some old models.
An industry source said that, while customers might now expect any new meter to be able to switch with ease, this might not be the case.
It is still important to check whether your meter will be a Smets 2. There are now more than 500,000 second-generation meters installed, but that still represents just 4pc of smart meters.
Rob Cheesewright of Smart Energy GB, the industry-funded body tasked with promoting the roll-out, said: “The last day for installing first-generation smart meters has passed, which is great news for customers. If you have a smart meter installed from today, be sure to ask for a second-generation one.”
Why get a smart meter?
The £11bn roll-out is one of the Government’s key green energy policies. The target was to install a new meter in every home by the end of 2020. At first, the scheme was sold to the public as a way to cut energy bills, and early adverts from Smart Energy GB featured consumers shocked by the cost of using a kettle or oven.
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Figures used by the industry suggest that households typically reduce their usage by around 2pc‑3pc after getting a smart meter, which works out at roughly £30 a year.
Last year the British Infrastructure Group, an influential group of MPs, said the true figure was closer to £11. But more recent research, by the consumer group Which?, suggests that as many as one in five households actually see their bills increase after getting a smart meter.
Experts point out that the meters themselves do not save energy, but may encourage a change in behaviour by the user. They say the potential of smart meters will be realised when they are integrated into a digital energy grid.
Mr Cheesewright said: “The upgrade of our energy network, with smart meters at its heart, will ensure that we have a reliable, cleaner and affordable energy system that will fully integrate renewables and electric vehicles, vital for the fight against climate change.”
But the Government’s targets seem highly likely to be missed. With the deadline less than two years away, analysis by Telegraph Money shows that five of the Big Six suppliers have given smart meters to just 42pc of their customers – seven years into the roll-out. Npower did not provide complete information.
Switching problems
Smets 1 meters are often unable to maintain their functions after a switch, known as “going dumb”. Switching is the best way to save money on your bills; uSwitch, the price comparison service, said changing supplier could save up to £324.
A national communications network, developed by Capita, the outsourcing firm, is now live after years of delays and the switchable Smets 2 meters will connect to it. But there are still several problems to contend with.
This newspaper reported last month that a shortage of the new meters meant installations could be slow at first. It has now emerged that several suppliers will still be installing Smets 1 meters into the summer.
Some suppliers argue that Smets 2 is far from ready. Utilita, for example, has requested a judicial review.
Bill Bullen from the firm said problems included compatibility issues affecting the North and some flats. He warned that prepayment customers could be left without power because of the way the Smets 2 network processes requests for top-ups, and that the lack of a keypad on the meters could create problems for people with learning difficulties.
The network is also vulnerable to data outages. Installations had to be cancelled by the thousand earlier this year when engineers were unable to connect to the O2 mobile network, he said.
“They say Smets 2 is more advanced than Smets 1. That is simply not the case,” Mr Bullen added.
Those who have a first-generation meter will eventually be connected to the Capita network, in theory making their smart meters fully switchable, but this has been delayed by six months and is due to begin in May.
The Department for Business, Energy & Industrial Strategy said the upgrades would be completed by the end of 2020.
A spokesman said: “Suppliers should now be focusing their efforts on ramping up installations of second‑generation smart meters.”