Economy 7 customers WILL now NOT lose cheap off-peak energy in March as companies extend deadline by a year

  • Homes with RTS energy meters have longer to have a smart meter installed
  • Those who refuse face losing access to cheaper nightly electricity rates

Households told their energy meters may stop working properly outside peak hours have been given an extension, but will still need to purchase a smart meter in the next 12 months or risk losing out on cheaper night-time electricity.

Earlier this week, This is Money reported that the technology powering 900,000 older meters used for Economy 7 and 10 tariffs would be switched off from March 31.

Many of these meters use Radio Teleswitch (RTS) technology, which uses BBC longwave radio to tell energy companies when a household is using at peak or off-peak times.

That principle underlies many off-peak energy rates, which offer cheaper electricity at night, allowing households to run their appliances for less. The best-known off-peak rates are Economy 7 and Economy 10.

Higher bills: Economy 7 or 10 customers who don’t get a smart meter will lose access to cheaper off-peak electricity

RTS meters are used for these off-peak hours, but smart meters also work, as do older mechanical meters with a clock, which continue to work regardless.

The deal allowing energy companies to use the RTS system was due to expire at the end of March 2024, leaving many homes with patchy access to off-peak energy deals.

Energy companies even warned some households that they could lose heating and hot water if they do not upgrade their meters.

But after last-minute crunch discussions, energy firm Energy UK announced earlier this week that this deadline would be brought forward to March 2025.

However, homes that currently have an RTS meter will still have to purchase a smart meter in the coming months, otherwise they risk their current meter no longer working properly from March next year.

Energy regulator Ofgem expects energy companies to replace all RTS meters with smart meters at least 3-4 months before the service is switched off.

This means that all homes with RTS meters must have a smart meter installed in the next twelve months.

The alternative is to keep their current meter but risk losing full use of Economy-type energy deals when the RTS system is switched off in 2025.

On the way out: Older RTS meters will be replaced by smart meters by energy companies

On the way out: Older RTS meters will be replaced by smart meters by energy companies

An Energy UK spokesperson said: ‘We can confirm that an agreement has now been reached which guarantees the RTS service will continue into 2025.

‘While discussions are ongoing to confirm when the RTS service will end, electricity suppliers are contacting households and businesses with RTS to arrange a smart meter upgrade and we strongly encourage customers to respond without delay.

‘Customers who think they may be affected by this should also contact their supplier as soon as possible.’

An extension of the March 31 deadline had to be done because energy companies had no hope of installing enough smart meters in time.

If all these old RTS meters were replaced with smart ones by March 31, energy companies would have to install approximately 21,500 smart meters per day and focus only on RTS customers.

But according to the latest government figures, these companies only manage just over 9,000 smart meter installations per day for all customers.

Some energy companies have already replaced 75 percent of their customers’ RTS meters, while others have managed just 10 percent, according to Ofgem statistics.

If a customer with an RTS meter is concerned about switching to a smart meter, Ofgem recommends that they raise this with their energy company.