Millions of households are not reaping the benefits of their smart meters due to faults and subpar service from their energy suppliers, according to Citizens Advice.
Over half of British homes now have a smart meter installed, but the consumer charity has highlighted that suppliers often go "missing in action" when issues arise with these devices. Citizens Advice is calling for new regulations that would require energy suppliers to identify and rectify problems promptly.
The charity expressed concern over the possibility of consumers receiving large unexpected bills if their supplier fails to take an automatic reading for a prolonged period. Under current rules, suppliers can "back bill" customers for up to a year, regardless of whether they have a smart meter or not. However, Citizens Advice believes this period should be reduced to six months to prevent large catch-up bills.
A survey conducted for the group revealed that 20% of households with a smart meter equating to 2.86 million households still need to manually submit meter readings as their device isn't automatically doing so. Nearly one-third (31%) reported issues with their in-home display (IHD) screen, which helps households monitor their energy usage and costs.
One in four people who sought help from Citizens Advice regarding smart meter issues had encountered billing problems. In some instances, customers received catch-up bills exceeding £1,000 after their meters went unchecked by suppliers for over a year.
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More than 10% of smart meters were not functioning correctly by the end of last year government figures reveal. However, Citizens Advice believes this is just the tip of the iceberg.
Citizens Advice is pushing for suppliers to be obliged to meet new Guaranteed Standards of Performance, set to ensure prompt diagnosis and repair of issues. If these standards are not achieved, affected customers should be automatically compensated.
The organisation also argues that consumers should no longer get stuck "waiting in limbo" while energy providers pin problems on the Data Communications Company, who deals with the network technology, leaving smart meter users with unresolved issues.
Chief executive of Citizens Advice, Dame Clare Moriarty said: "The whole point of smart meters is to empower households to save energy and money, but in reality millions are missing out on those benefits due to problems with technology and poor supplier service."
She added: "Energy companies are very keen for customers to get a smart meter but when issues arise they are often nowhere to be found. That has to change. Suppliers have been far too sluggish in fixing issues with problem meters. New obligations and stronger accountability measures are needed to restore public trust in this vital tool to reach net zero."
A spokeswoman from Smart Energy GB pointed out: "The vast majority of smart meters are operating as they should and it's good to see this report highlight that most smart meter owners are happy with them, benefiting from the ability to better manage their energy use and access smart products and more flexible energy tariffs."
She added: "However, if you're among the minority with a smart meter that isn't currently sending readings automatically to your supplier then we understand this can be frustrating. Please be assured that if your meter isn't currently sending readings automatically, it should still be recording your energy use and your energy won't cost you more."
"We would recommend that you contact your supplier if you experience an issue with your smart meter and send them regular meter readings to make sure you receive accurate, rather than estimated, bills until all of the features of your smart meter have been restored."
A spokesperson for the Department for Energy Security said: "Our official statistics show the vast majority of meters are working in smart mode almost 90% of the 35 million smart meters installed. Energy suppliers are required to keep their customers' meters working and Ofgem is responsible for regulating them against this requirement. Any issues with smart meters and in home display screens should be addressed promptly and we will soon announce plans to drive better service for new and existing smart meter customers."
An Ofgem spokeswoman addressed this issue stating: "While the majority of smart meters are working correctly, we've asked suppliers to provide us with more detail on how they plan to tackle connectivity issues. Suppliers are responsible for making sure their customers' smart meters operate correctly, and we expect them to communicate with their customers clearly if there are any issues with their smart meter."
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Consumer research agency Savanta polled 4,000 domestic energy consumers between August and October.
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