Making smart meters work for everyone
53 million will be installed in every home and small businesses by 2020 — so problems need to be fixed
Installing smart meters in every home and small business by 2020 is no small feat. If delivered well, everyone stands to benefit. But, if problems are not addressed when they are identified, the consumer experience of smart meters risks being compromised.
We are helping industry, government and the regulator identify issues and working closely with them to remedy problems before the roll-out ramps up.
Overall, smart meters bring a raft of positive changes to the energy market. They can give people more understanding and control over their energy use as well as opening the door to new offers, products and services.
But the smart meter roll-out is one of the largest infrastructure upgrades in the country. It’s a monumental task. If the target of 53 million smart meters to be installed by 2020 is to be achieved, it will mean approximately 37,400 smart meters need to be installed every day — even more if installers are allowed to have the day off on bank holidays!
The most recent figures show that the top 11 suppliers — with 91% of the domestic electricity market — are installing at a rate of only 13,000 meters per day, indicating how much more needs to be done.
We know, most people who have smart meters are satisfied with them. Our own survey of 8275 people found only 7.1% who weren’t.
However, with such acceleration, it’s inevitable not everyone will have a smooth experience of smart meters. And we’ve seen contacts to the consumer service helpline rising more or less in line with the number of smart meters installed.
We see issues at all stages of the customer experience. Whether that’s before someone has decided to have a smart meter installed, during the installation process or after. Here’s what we’ve found:
- Switching with a smart meter can be a confusing and poorly explained experience.
Having a smart meter should not stop you from switching suppliers and most people can do so without any problem. But one of the well-known limitations of early generation smart meters is that you may lose some functionality when you switch suppliers — this means you’d have to send your new supplier meter readings or receive estimated bills.
Our research showed only 13% of smart meter users were aware of this. What’s worse, only 3% were told by their energy supplier before they had the meter installed, despite companies having an obligation to do so.
Data from the consumer service helpline has also helped us understand the magnitude of the problem. In March, we received almost a call a day about this issue.
The government plans to upgrade these meters so that people who have them will be able to switch without losing functionality in the future. But it’s important the short-term limitations are communicated effectively so people are able to make informed decisions.
We’ve worked with industry and government to put in place principles, which apply to members of Energy UK — a trade body for energy suppliers. These provide a minimum standard of communication, ensuring the process is transparent and clear.
2. We’re still seeing some consumers getting estimated bills.
Most people with a smart meter get accurate bills. But some people have contacted us as they are still receiving estimated or inaccurate bills, contradicting the expectations set by smart meters.
In the worst cases, people have been sent an expensive ‘catch-up bill’. One person contacted us after they received a catch-up bill of over £1,000 because their supplier had been relying on estimates despite having a smart meter.
We want everyone to benefit from an end to estimated billing. It is inevitable that problems will emerge from time to time but where billing is not accurate, supplier interventions should be swift, clear and supportive.
That’s why we’ve been asking Ofgem to reduce the amount the time energy companies can go back and bill their customers.
3. Installation problems need clear and consistent resolutions.
Energy companies intend to install meters at an increasingly fast pace. More installations mean more installation problems — these can be quite specific to a person’s home, the equipment around their meters and the area they live in.
Whilst the industry has been planning, piloting and learning from early installations it’s not always going to be possible for them to foresee problems beforehand. That’s why it’s even more important that companies can react appropriately. There needs to be consistent and robust responses to ensure nobody is left behind during this roll-out or adversely affected.
Our ongoing conversations with the energy industry will be crucial to understand what is being done and how processes can be improved.
As the roll-out continues, it’s likely some problems will be recurring and other, new issues will also emerge. That’s why it’s important to monitor the consumer experience. We’ll publish our data online and continue to work with the government and the regulator highlighting systematic problems when we see them. We’ll also continue talking to energy companies to address the root causes and help shape the roll-out to maximise consumer benefit.
We’re planning to make improvements to our webpage. Please do fill in a short survey on your experience, to help us identify what you’d like to have more information on.
