Acknowledging the fact that in most cases RTS meters should be replaced with smart meters, it is important to reflect on some of the issues this can present. Where smart meters are already installed, too many are not fully functional. In August 2022, a survey of 1,580 adults for Smart Energy GB found that 37% of respondents with smart meters claimed to have had an issue with their meter at some point following its installation, including no automatic readings, inaccurate bills and the smart meter or in-home display not showing information14. Furthermore, surveying by Savanta for Citizens Advice has found that where customers report smart meter issues to their suppliers, they often say their concerns are not addressed promptly by suppliers, causing distrust and disengagement15.
We also know that there are ongoing issues around smart meter network coverage, with coverage notably lower outside of urban centres16. In addition, according to DESNZ as of March 2024 3,794,000 installed gas and electricity smart meters in domestic properties in the UK are not operating in smart mode17.
The Panel has heard that for those households in areas with poor network coverage, it is very likely that even if a smart meter is installed it will immediately work in ‘dumb’ rather than smart mode with times and tariffs not changeable remotely. It is not possible to update a non-communicating smart meter without an engineer visit, which can be very hard to schedule, especially for those in rural locations. For those with a single rate electricity meter, a non-communicating smart meter is a frustrating inconvenience, but for those with a multi-rate electricity tariff, not having the ability to change settings remotely can be the difference between having or not having heating and hot water.
We understand that there are workarounds in place where there is poor smart meter network coverage which involve:
- Suppliers working out a different way to communicate with smart meters or
Suppliers offering pre-programmed smart meters that have pre-set off-peak and peak switching times18 - If it is possible that a non-communicating smart meter with preset timings can give equivalent results as an RTS meter, then suppliers need to ramp up their installation of these meters and customers need to be made aware of their options.
The Scottish Government’s Acting Minister for Climate Action, Alasdair Allan, has previously flagged concerns about the lack of penalties for suppliers who fail to replace RTS meters. There are currently penalties for failing to meet smart meter targets, but there are no penalties for suppliers who fail to replace RTS with smart meters (whether fully functional or pre-programmed) by June this year. There are also no penalties for the Data Communications Company (DCC) for failing to deliver smart-meter coverage across every part of the country. The Panel support this point and would urge Ofgem to better hold suppliers and the DCC to account.