Energy warning for 2.7million with smart meters that could leave you £1,000s out of pocket – what it means for bills

AROUND 2.7million homes are using smart meters which could leave you thousands out of pocket.

Millions of smart meters around the country are operating in “dummy” mode.

GettyAround 2.7million homes are using smart meters which could leave you thousands out of pocket[/caption]

This then leads to households not being able to calculate their bills properly and risking being overcharged.

A total of 2,780,000 out of around 33million meters are not in smart mode – also known as “dummy” mode.

That’s according to the most recent figures from the Department for Energy Security and Net Zero (DESNZ) published in August.

The benefits of a smart meter can usually be seen on your energy bill, which is increasingly important while gas and electricity costs remain high.

Smart meters can save households hundreds every year, as they give people a better visualisation of their energy use.

But if they lose connection to national network Data Communications Company, or local networks, customers can be forced to rely on estimated bills.

If a smart meter isn’t working it means customers have to manually work out their usage to avoid paying less than they owe and getting into debt.

Their bills should then be corrected once the supplier has manual meter readings.

But some customers have still ended up paying too much and struggled to get all or some of their money back – and found themselves in debt, according to the BBC.

Having a faulty or dummy device means that you might not be able to take advantage of electric vehicle (EV), solar energy tariffs or the demand flexibility service (DFS) which are only offered to those with working smart meters.

A DENSZ spokesperson said: “The overwhelming majority of smart meters are modernising energy for millions of consumers and providing households with near-real time information, which they are using to manage their energy use and save money on their bills.

“We understand a small proportion are suffering from technical issues and are working with Ofgem, energy suppliers and data experts to solve these issues.”

There are several reasons why smart meters might be operating in traditional mode.

These include meters being unable to communicate via the wide area network, installed meters yet to be commissioned like in new builds, or if a meter requires a firmware upgrade.

The gadgets were first introduced to homes in 2011 and initially, the government gave a target of having one in every home in the UK by 2020.

But the deadline has since been pushed back to 2025.

Suppliers are supposed to take “all reasonable steps” to replace smart meters that are not working properly.

But the government’s delayed rollout targets mean suppliers have much clearer incentives to prioritise the installation of new meters rather than replacing broken ones, according to the report.

It also states that consumers are only guaranteed the benefits of being able to monitor their energy consumption in real-time for a year.

That’s because if their display breaks after that, the supplier currently has no obligation to replace it.

The Sun previously spoke to a baffled EDF customer who had tried to get his “dumb” meter replaced but to no avail due to this loophole.

He had complained to the energy giant and even took his case to the ombudsman – but the loophole in the rules meant he hit a brick wall.

We also spoke to a homeowner who “nearly had a heart attack” after he was charged almost £2,000 for one day’s energy use due to a faulty smart meter.

A spokesperson for OVO blamed the problem on upgrading from a first to second generation smart meter and apologised for the shock caused.

Previously, we also spoke to a pensioner who got £900 back from his energy provider after discovering his meter was running 10% fast.

If your smart meter does break outside the 12-month warranty period then you may have to pay to replace it.

Some energy firms even charge up to £50 to have a new one installed.

Earlier this year the parliamentary accounts committee (PAC) warned seven million customers that a big switch-off will cripple smart meters in the UK.

It has warned that millions of smart meters will be rendered useless when the 2G and 3G phone networks are scrapped.

That’s because the gadgets have a SIM card, like your mobile phone, which connects to wireless networks in order to work.

Around seven million of the 32.4million that have been installed up to March this year will need to be replaced with new functional ones.

They’ll need to switch to a 4G network, which requires a new SIM card.

However, you can only do this if you have a second-generation smart meter.

Despite homeowners not paying for smart meter installations initially, it’s expected they’ll be asked to handle any upgrade costs, or any new installations.

Can I complain to my energy supplier about a faulty meter?

If you’ve reported that your smart meter and/or in-home display is faulty and your supplier is hesitant to fix it – submit a complaint.

Each energy company has their own complaints procedure for customers to follow.

When you make a complaint, make sure you follow this so they have the information they need to resolve the issue.

Simply explain what the problem is and what you want your supplier to do about it.

Check your energy supplier’s website for an explanation of how to launch a complaint.

Energy suppliers have eight weeks to respond and come to a decision.

If it doesn’t or you’re not happy with the response, you can take the firm to the Energy Ombudsman.

Meanwhile, here is the full list of energy suppliers that charge up to £50 to replace smart meters and displays.

Plus, if you want to know more about smart meters and their potential benefits see our handy explainer.

You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.

   

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