- The number of smart meters installed decreased in the first months of 2024
- Energy suppliers say most people who want a smart meter already have one
The number of smart meters being installed in homes fell by 10 percent in the first three months of the year, continuing the longer-term decline in new installations.
The latest government figures show that 780,000 smart meters were installed by major energy companies between January and March, compared to around 870,000 in the previous three months.
More than half (56 percent) of all energy meters are now smart meters, while another 7 percent are smart meters that function like traditional ‘dumb’ meters.
Peak: According to major energy companies, we may have reached the peak of the number of homes that will voluntarily have a smart meter installed
The number of new smart meters being installed has fallen overall since a peak in 2017.
Last year, energy regulator Ofgem fined six of Britain’s biggest energy companies £10.8 million for failing to meet smart meter installation targets.
The government wants 80 percent of homes to have a smart meter by the end of 2025.
Smart meters were introduced in 2011 as a way to help households control their energy bills and in turn keep bills low.
They are installed in homes to replace more traditional meters, including pre-payment key meters.
Suppliers say they provide more accurate and timely readings, so customers only pay for the energy they use.
But energy companies are struggling because most households that would choose to have a smart meter already have one, with resistance from many of the rest.
Last summer, energy suppliers said they had exhausted the ‘low-hanging fruit’ of households wanting a smart meter, according to a National Audit Office report.
The regions with the highest proportion of smart meters are Bolsover, Chesterfield, County Durham, Rotherham, North Kesteven and Mansfield, with 74 percent or more of their domestic electricity meters being smart meters.
As a rule of thumb, the higher the population density in an area or the more remote it is, the fewer smart electricity meters are installed.
In Inner London, in some regions only 30 to 40 percent of homes are equipped with smart meters.
The lowest smart meter installations (>20 percent) are on islands off the coast of Great Britain: the Isles of Scilly, Na h-Eileanan Siar, the Orkney Islands and the Shetland Islands.
This is due to ‘operational reasons’, according to the Department for Energy Security and Net Zero.
The charity Citizens Advice says it is concerned about households losing out due to smart meters not working properly.
Gillian Cooper, energy director at Citizens Advice, said: ‘Smart meters can help households save money on their energy bills, but today’s figures show millions are missing out on these benefits because their meters are not working as they should.
‘This is just the tip of the iceberg. Our research shows that 20 percent of households with a smart meter still have to regularly submit manual measurements. And almost a third experienced problems with the display in their home.
‘Suppliers have been too slow to solve problems with people’s smart meters. We need new rules to ensure that energy suppliers identify and resolve problems as quickly as possible.’
Should I purchase a smart meter?
Smart meters are not mandatory and you decide whether you have one installed.
You will probably be offered one from your supplier if you don’t already have one, but you are well within your rights to refuse.
If you do decline, keep in mind that you won’t have access to all energy rates, which means you may end up paying more for your energy than you would otherwise.
Earlier this month, Chris O’Shea, head of British Gas’ parent company Centrica, said all homes should have a smart meter to help the government meet its net zero targets.