Smart meters

In terms of the transition from traditional meters to smart meters, the four-year smart metering Targets Framework, which commenced on 1 January 2022, sets energy suppliers individual minimum roll out targets for how many smart meters they must install each year. There is currently no requirement for suppliers to install a smart meter on request, but if you would like one you can contact your supplier to discuss availability in your area. If you are a private renter, if the energy bills are in your name or you prepay for your energy, you can choose to have a smart meter installed. However, you should check your tenancy agreement first and let your landlord know.

In addition, under their licence conditions, energy suppliers are required to take all reasonable steps to install a smart meter where a meter is fitted for the first time or when an existing traditional meter needs to be replaced due to a fault.

First and second-generation smart meters are similar in that they record how much energy a consumer uses and allow two-way communication with the energy supplier. One of the key differences is the cross-compatibility of second-generation meters, which comes down to the communications network they use. Cross-compatibility means a smart meter will keep its smart functions across all energy suppliers, so if you switch supplier the smart meter will continue to work in the same way.

A national communications network has been purpose built for smart meters and is managed by the Data Communications Company (DCC). This national network was not ready when energy suppliers started installing smart meters. In order for consumers to have the benefits of smart meters, energy suppliers used third-party communications networks. All first-generation smart meters use a third-party communications network to send metering information to the energy supplier. Second-generation smart meters use the purpose-built national network and are now the meter type for any new smart meter installation.

With first-generation smart meters, it is possible that consumers will lose smart functionality when transferring between suppliers. But this problem is being addressed with a technical upgrade which allows first generation smart meters to be enrolled and connect to the national network. If a supplier is unable to enrol a first-generation meter, it must replace it with a second-generation meter. You don’t have to take any action on this as the work will be completed by your supplier, who has until the end of 2023 to complete this.

There might be coverage issues, meaning that readings can’t be sent to your supplier. Signal loss will happen when signal has to pass through the walls of a building. It may be that prior to arriving to install a smart meter, the supplier checked the signal strength for the area and it was okay. That check only shows the signal strength from the roadside, not the signal strength within the building. It is usually only once the supplier has put the electricity meter and communications hub on the wall that the installer realises that the signal strength is poor. The industry is working on a solution to try and resolve these issues. 

No communications network works perfectly at all times. If a consumer loses smart meter functionality, as the Energy Ombudsman when looking at a dispute we will consider whether the energy supplier has taken reasonable steps to try to resolve the issue and what ‘detriment’, if any, the loss of functionality has caused the consumer. We may not be able to require a supplier to correct signal issues in the short term.

The communications hub is typically situated within or near to the electricity meter. If the gas meter is too far away it may not be able to communicate with the communications hub. Often this only becomes clear once the meters have been installed. The energy industry is working on ways to try to achieve communication between the gas meter and the communications hub when there is a significant distance between them. Currently there is no simple solution and consumers in this situation may have to be patient until the industry develops a solution.

An IHD gives consumers information about the energy they are using. It’s this device that allows consumers to see their ongoing consumption in pounds and pence in near real time. If you report a fault with the in-home display within 12 months of the date of installation, and your supplier is satisfied that the fault isn’t due to a failure by the customer to keep the in-home display in good working order, the supplier must repair or replace the in-home display free of charge. 

Aside from physical faults with an IHD, communications issues can prevent the smart meter from connecting to the in-home display. A drop in signal can result in the in-home display showing missing or not up to date information. For example, we have seen cases where due to signal drop, not all of the energy the customer has used is displayed on the in-home display. While IHDs operate in near real time and are not 100% representative of usage, a signal drop leading to a significant portion of usage not showing which can cause confusion when the customer receives their bill, as typically the usage and total cost on the bill is higher than that shown on the in-home display. The bill is usually accurate as it is based on readings from the meter. While this can cause confusion, it does not necessarily mean that the billing is wrong or the meter is faulty.

Also, when there is a significant distance between where the meter is located and the property (e.g. flats) the signal from the meter may not reach the in-home display – resulting in the customer not having no consumption information. The energy industry has developed a solution to this problem, which is currently being trialled and will be deployed from July 2023.

As the energy industry moves towards a smart and flexible system, manufacturers are less likely to produce traditional meters. This means energy suppliers may not have any traditional meters in stock. While it is your right to refuse the installation of a smart meter, if your traditional meter needs to be replaced due to safety concerns or it becomes faulty, there may be limited options available. It may be possible in exceptional circumstances to install a smart meter with the smart functionality turned off, so that it works just as a traditional meter would. Contact your supplier to check what is possible.

One of the benefits of smart meters is that bills are no longer based on estimated meter readings. Estimated billing can result in consumers later receiving large ‘catch-up’ bills, leaving them with a debt to repay. Smart meters send meter readings to your energy supplier, so they can produce accurate bills. Estimated bills and backbilling are common reasons for complaints to the Energy Ombudsman. We believe that smart meters will reduce the problems that we see from estimated billing.

Only under exceptional circumstances would we expect an energy supplier to change a smart meter to a traditional meter. Smart meters are now the default type of meter and under their licence conditions energy suppliers are required to take all reasonable steps to install a smart meter when an existing traditional meter needs to be replaced.

If the energy supplier does have traditional meters in stock, it would be up to the individual supplier to decide whether they will replace a smart meter with a traditional meter. The installation and removal of meters costs money. If the energy company agrees to replace a working smart meter, it is entitled to charge you the costs for doing so.

As our society has become more technologically advanced, there has been a significant increase in the number of devices that emit radio waves. These devices include laptops, Wi-Fi routers, mobile phones, computer monitors, game consoles, baby monitors, and smart meters.

There has been a lot of scientific research carried out over several decades examining the effects of exposure to radio waves on health. In light of this body of research, Public Health England, the agency responsible for protecting people from health hazards, has stated:

“The evidence to date suggests exposures to the radio waves produced by smart meters do not pose a risk to health.”

Based on the statement made by the UK Health and Security Agency, we as the Energy Ombudsman have no reason to believe that smart meters are a risk to health. Therefore, it is unlikely that we would require an energy supplier to replace a smart meter on health grounds unless you can provide medical evidence that the smart meter is causing harm to your health.

Economy 7 meters record day and night consumption separately. Consumers will pay a cheaper rate for night-time consumption and a higher rate for day-time consumption. The smart metering system has been designed to enable a wide range of tariffs, including Economy 7, and all smart meters can support tariffs which charge different prices at different times throughout the day and night. Complex smart meters, for instance Economy 10 are also available.

The communications hub is typically situated within or near to the electricity meter. If the gas meter is too far away it may not be able to communicate with the communications hub. Often this only becomes clear once the meters have been installed. The energy industry is working on ways to try to achieve communication between the gas meter and the communications hub when there is a significant distance or obstacles between them. Currently there is no simple solution however industry has developed a technical solution which is currently being trialled and will be deployed from July 2023.

First generation smart meters need to be operating in credit mode on the industry database to allow a transfer. Often they’ll be registered as prepayment to reflect the mode of the meter at the time. The supplier taking over the supply should be aware of this and allow the transfer, but some suppliers are misunderstanding the database record and incorrectly rejecting transfers.

It is our view that the new supplier should not refuse a transfer because the industry records show a prepayment smart meter. Therefore, if a consumer is stuck between suppliers in these circumstances, our recommendation would be that the consumer complains to their new supplier.