Update on the rollout of smart meters

Ensure suppliers prioritise replacing faulty smart meters and deploy future-proofed technology.

Too many smart meters are not fully functioning and millions more will be impacted when the 2G and 3G mobile communication networks close. In March 2023, around 3 million (9%) of smart meters were not working properly in total. Of these, 1.6 million are “transitory” issues according to the Department, … Read more Too many smart meters are not fully functioning and millions more will be impacted when the 2G and 3G mobile communication networks close. In March 2023, around 3 million (9%) of smart meters were not working properly in total. Of these, 1.6 million are “transitory” issues according to the Department, but the remainder were faulty, and either not sending energy use information to suppliers or not displaying usage to consumers, or both. Suppliers are supposed to take “all reasonable steps” to replace smart meters that are not working properly, but the government’s rollout targets mean suppliers have much clearer incentives to prioritise the installation of new meters rather than replacing broken ones. Consumers are only guaranteed for a year the benefits arising from being able to monitor their energy consumption in real-time - because if their display breaks after that, the supplier currently has no obligation to replace it. An estimated seven million communications hubs (part of the electricity smart meters) will also need to be replaced, because they will lose functionality when the 2G and 3G mobile communications networks are closed. The costs of these upgrades could be very significant, and, like other costs of the rollout, are ultimately passed on to billpayers. Recommendation 5: The Department and Ofgem should set out: a) what they will do to ensure suppliers assign more importance than at present to replacing those smart meters (and their in-home displays) not functioning properly; b) a timetable for replacing the communication hub element of smart meters that will lose functionality when the 2G and 3G mobile networks are switched off; c) measures to ensure that suppliers use future-proofed technology – for example, by excluding 2G or 3G connectivity – in all new smart meter installations. Show less