Your questions about Smart Meters answered
What are the advantages and disadvantages of having a SMART meter. Below is advice on choosing whether to have a SMART meter.
What is a “Smart Meter”?
Smart meters are next-generation gas and electricity meters which monitor your electricity and gas usage in “real time”. There are no upfront costs and there are a number of advantages – and disadvantages – to them compared with traditional meters. The Government’s ambition is for everyone in England, Scotland and Wales to be offered them in the next few years.
A Smart Meter – and its associated display unit – will store data about your energy use every 30 minutes. Your real-time and historical data can be shown on a display unit in your home or, often, via a web page.
Smart meters can work in “prepayment” or “credit” mode.
What are the advantages of having a smart meter?
It can, in theory, help you to budget your energy. Traditional meters register a running total of the energy but smart meters show you the amount of energy that you are using and its cost, so you can pinpoint where you can cut back. Having that knowledge could, in theory, help you reduce your energy consumption.
Sometimes there are disputes between customers and energy suppliers because of estimated bills. Smart meter readings are sent automatically so you no longer have to send readings manually.
They can make life a bit easier. Traditional meters can be in hard-to-reach cupboards and for those who have disabilities that could be a problem.
If you’re a prepayment customer, you can top up automatically and you view the credit balance on your display.
We are beginning to see more tariffs come onto the market that could save you money. For example, Octopus Energy runs a rewards scheme and British Gas is offering half price electricity from 11am to 4pm on Sundays. But the flip side of that is if you are aware of these tariffs and you end up using energy at these peak times then you will pay more. So, it’s not always the right option for everyone.
What are the disadvantages of a “Smart Meter”?
- Energy companies can change your meter remotely from “credit” (pay on receipt of bill or Direct Debit) to “prepayment” mode.
- Energy companies can cut off your electricity or gas remotely, without having access to your home.
There are rules which energy must obey when cutting off your electricity remotely or putting your meter into “prepayment” mode.
- Some customers may completely stop using electricity or gas, out of worry, when they see the readings on the display increasing. “Smart meter anxiety” is now a recognised problem:
‘I’m obsessed with my smart meter’
What are the UK Government’s smart meter targets?
The 4-year smart meter rollout obligation began in January 2022. Energy suppliers are subject to binding annual installation targets with which they must comply.
Ofgem says that it is “currently assessing suppliers’ end of year performance reports”. It says that it is “aware that some suppliers appear to have failed to achieve their 2022 smart meter installation targets in line with their licence obligations. Ofgem will consider whether to take enforcement action in respect of any supplier which appears to have breached its licence conditions, in line with our Enforcement Guidelines.“
Are smart meters reliable?
About 9% of smart meters were not working during March 2023. Issues included not sending information about energy to the supplier, not displaying the correct energy use to consumers and sometimes both!
Update 20 December 2024 EDF billing system upgrade causes customer chaos Energy bills have continued to be astronomical but imagine getting a bill for £39,000! That’s what happened to Turner Prize winning artist Grayson Perry who took to X (formerly Twitter) to complain that EDF had tried to take this amount by Direct Debit. Journalist Jon Sopel joined in, stating that his bill had been for 18k from EDF. These errors were due in part to incorrect Smart Meter readings.
Update 24 January 2024 An investigation by This is Money My smart meter charged me for a house 270 miles away!’: How devices are going haywire revealed numerous cases of Smart readings going wrong.
I tell you what – we’ve had about a million such sessions looking at those darned things. They’re so bad. It’s why we invented the Octopus Home Mini – can we send you one?https://t.co/9GvM1QEEdv
— Greg Jackson (@g__j) January 25, 2024
New blow to British smart meter rollout as number of faulty machines leaps to 4m 26 March 2024.
What should suppliers do about faulty smart meters?
Energy suppliers must take all reasonable steps to fix faulty meters. It would appear that because they have to meet the government targets to install new smart meters mentioned above, they’re prioritising that over fixing faulty smart meters.
There have also been some headlines around smart meters needing to be replaced and how that might bring extra costs for energy consumers.. However, the actual issue here is that it’s a specific element within certain older smart meters that will need to be replaced over time. The first generation of smart meter technology (SMETS1) uses a GSM SIM card to connect to 2G and 3G telephone networks, which will be phased out by 2033. If you switch supplier it is possible that the new smart meter will not be able to pick up the communication and will go “dumb”, losing the remote reading functionality but will still work as a basic energy meter.
Those elements will therefore have to be upgraded.
Specifically, under the Ofgem Standards of Conduct and Quality Standards if you report a faulty prepayment meter to your supplier and someone is not sent to repair or replace it within a specified time then the supplier must make a compensation payment to you.
From 23 February 2026 consumers will be compensated £40 if their provider fails to install or repair their smart meter within 90 days.
Is it possible to under or overpay with a smart meter?
To set your monthly Direct Debit (DD), most energy companies take your annual cost and divide it by 12, although some suppliers take seasons into account. Condition 27 of the electricity supply license conditions states that they must take reasonable steps to ensure Direct Debit levels are fair, and to explain the level at which they are set. So, if you think they are wrong, contact your supplier to query it.
Remember the estimates are based on current prices.
Your supplier should establish a DD payment that matches your estimated likely usage. You can ask for this to be decreased if you think you are overpaying. The supplier will inform you if your monthly payments are not covering your usage and increase your DD. You may want to keep a buffer in your account to help over Winter.
Alternatively, request a “variable Direct Debit”, by which you submit monthly readings and pay for only what you use.
If I have overpaid, can I request the money back?
Yes. If you want the credit in your account to be paid back to you in part or in full then request this from your supplier, who must then refund you.
Do I have to have a smart meter?
No. Chris O’Shea Centrica CEO told a committee of MPs that they should be made compulsory.
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What was the pre-payment scandal?
Until recently, energy suppliers were able to switch customers remotely on to pre-payment plans. An investigation by The Times, published in February 2023, revealed that British Gas contractors, employed by Arvato Financial Services, broke into homes, including those with vulnerable people, to fit prepayment meters. This led to the regulator OFGEM asking all energy suppliers to suspend forced prepayment installations.
This was one particular case with which I helped a vulnerable consumer, Energy runs out for Utility Warehouse customer.
What are the current rules on pre-payment plans?
From 8 November 2023, energy suppliers must now follow new stricter rules before a prepayment meter can be involuntarily installed in a household.
Here are the OFGEM rules that energy suppliers must follow:
- “Before a prepayment meter can be involuntarily installed, energy suppliers must:
- make at least 10 attempts to contact a customer before a prepayment meter is installed
- carry out a site welfare visit before a prepayment meter is installed
- refrain from all involuntary installations for the highest risk customers including:
– households which require a continuous supply for health reasons, including dependence on powered medical equipment
– households where all occupants are aged 75 years and over (if there is no other support in the house)
– households with children aged under 2 years old
– households with residents with severe health issues including terminal illnesses or those with a medical dependency on a warm home (for example due to illness such as emphysema, chronic bronchitis, sickle cell disease)
– where there is no one within the household who has the ability to top up the meter due to physical or mental incapacity
– audio or body cameras must be worn by the lead supplier representative present on all warrant installations or site welfare visits to check for vulnerabilities ahead of an involuntary installation or remote mode switch. All audio and footage will be available for audit
– give a £30 credit per meter (or equivalent non-disconnection period) on all warrant installations and remote switches as a short-term credit/measure to remove the risk of customers going off supply at the point of PPM meter installation
– re-assess the case once a customer has repaid debts owed. Suppliers must contact the customer to offer assessment of whether a prepayment meter remains the most suitable and preferred payment method of choice for consumers; if any prepayment meter customer is clear of debt and wishes to move off their prepayment meter (understanding any changes in the tariff they will pay), the supplier must agree where the customer passes any required credit checks”
However, according to the BBC, “Ofgem says no company has yet passed its new stricter tests”, OFGEM needs to come down harder on energy suppliers to ensure that they comply with these new rules.
EDF incorrect high bills
What do I do if I have a problem with my energy supplier that it won’t resolve?
See All you need to know to make a complaint about energy. Ultimately, you can take the matter to the Energy Ombudsman 8 weeks after your initial complaint. If you wish to complain in fewer than 8 weeks, ask your supplier for a “deadlock letter”.
From 23 February 2026 consumers will be compensated £40 if their provider fails to install or repair their smart meter within 90 days.
Help to complain about energy
How to save money on and complain about, energy Various posts to help with energy issues.
Further help to complain about energy
20 Tips for effective complaining
101 Habits of an Effective Complainer provides you with more tips.
Purchase and download templates to gain redress swiftly.
