Prior to the energy price crisis it was conventional wisdom that installing a ‘smart’ meter was a positive step to take in raising awareness of energy waste and increasing consumers’ understanding of how they used the energy they paid for.
As an important plank of government policy on energy efficiency, national targets were set on the nationwide installation of smart meters; even though they have slipped lately.
However, recent stories of smart meters being switched to conventional prepay meters without the consent of consumers as a punishment for accumulated energy arrears have made it less clear as to whether installing a smart meter is the smart thing to do.
Below are some pros and cons of installing smart meters during this energy price crisis.
Pros:
- You don’t pay upfront to have a smart meter installed – smart meters are paid for through everyone’s energy bills, just as old-style meters were.
- A smart meter can automatically send meter readings to your supplier, meaning they can bill you accurately for the energy you’ve used. No more reliance on estimated bills.
- You don’t have to accept a smart meter if you don’t want one. They are not compulsory.
- You can ask your supplier to install your smart meter with the extra functionality switched off. This means it’ll work in the same way as your current meter, and won’t send any information to your supplier. Contact your supplier to check about this.
- If you have a smart meter, you can still switch energy supplier but, before you switch, it’s a good idea to check if your meter will work in ‘smart mode’ after switching.
- If you decide to get a smart meter your supplier is responsible for installing it and making sure it works properly. They should also give you a number to call if anything goes wrong.
- Your smart meter can be set up as a prepayment meter. If yours is prepayment, your energy supplier will give you a top-up card or key but remember, prepayment is usually a more expensive way of paying for energy.
- Smart meters give you an accurate up-to-date reading of how much energy you are using and how much it is costing you. You can use this information to compare your current and previous usage or to compare usage with similar households elsewhere. You can then see if, and how, you can reduce energy waste and save money.
Cons:
- A smart meter won’t automatically save you money. You’ll have to be proactive to reduce your energy costs. The best way to do this is to use the digital ‘in-home’ display that you’ll be offered with a smart meter to keep track of how much energy you’re using. You can then try to reduce it.
- If you refuse a smart meter, you might find it hard to access all tariffs because in future the cheaper tariffs offered by suppliers might only be available to customers with smart meters.
- If you need to replace your old-style meter because it’s unsafe, you might not be able to refuse a smart meter. This is because not many old-style meters are made now – your supplier might not have any in stock.
- Energy suppliers are currently permitted to switch smart meters to prepay mode remotely if consumers build up energy debts they can’t repay. Citizens Advice is currently campaigning to suspend this activity over the winter period.
The information above comes from the Citizens Advice website – and is not exhaustive. For further information see other sources below:
- Citizens Advice – https://www.citizensadvice.org.uk/consumer/energy/energy-supply/your-energy-meter/getting-a-smart-meter-installed/ .
- National Energy Action – https://www.nea.org.uk/mediafactsheets/smart-meters/
- Smart Meter GB – https://www.smartenergygb.org/
- GOV.UK – https://www.gov.uk/guidance/smart-meters-how-they-work
Don’t let the current energy price crisis, or scare stories you have seen in the media, cloud your judgement.
Keep warm this winter.
-Ends.
