Money

Not having a smart meter can cost you £250 extra a year as customers forced to take them out to get cheap deals


HOUSEHOLDS are being forced into getting smart meters to get the cheapest energy deals – and they could be up to £250 worse off if they don’t.

Taking the big six energy providers, Scottish Power has the largest difference in price between its cheapest smart meter tariff and its cheapest non-smart meter deal.

 Energy providers are charging up to £247 less if you take out a smart meter

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Energy providers are charging up to £247 less if you take out a smart meterCredit: Alamy

Here, the cheapest non-smart meter deal costs the average user £1,219 a year, while cheapest smart meter deal is £247 less at £972 a year, according to price comparison site uSwitch.

And Scottish Power isn’t the only one charging hundreds less for smart meter deals – there’s a £228 difference in price between the cheapest deals offered by EDF, £219 for Eon, £223 for British Gas, £55 for Npower and £14 for SSE.

Earlier this month, British Gas, Eon and Npower were accused of “blackmailing” customers into getting smart meters by withholding the cheapest deals.

Looking at the most expensive energy tariff on the market, this is also for a non-smart meter tariff.

Here, Ebico charges £1,564 a year, which is £312 more than the priciest smart meter tariff of £1,252 from Utilita.

Smart Energy GB, the campaign group pushing the smart meter rollout says smart meter tariffs are cheaper because it costs providers less to supply these customers.

It claims this is because meter readings are automatic while billing enquiries tend to be more straightforward.

How to save on your energy bills

SWITCHING energy providers can sound like hassle – but fortunately it’s pretty straight forward to change supplier – and save lots of cash.

1. Shop around – If you’re on an SVT deal you are likely throwing away more than £300 a year. Use a comparion site such as MoneySuperMarket.com, uSwitch or EnergyHelpline.com to see what deals are available to you.

The cheapest deals are usually found online and are fixed deals – meaning you’ll pay a fixed amount usually for 12 months.

2. Switch – When you’ve found one, all you have to do is contact the new supplier.

It helps to have the following information – which you can find on your bill –  to hand to give the new supplier.

  • Your postcode
  • Name of your existing supplier
  • Name of your existing deal and how much you pay
  • An up-to-date meter reading

It will then notify your current supplier and begin the switch.

It should take no longer than three weeks to complete the switch and your supply won’t be interrupted in that time.

But Cordelia Samson, energy expert at uSwitch, told The Sun that firms are pushing cheap smart meter tariffs to avoid government fines.

She said: “If suppliers haven’t at least offered a smart meter to all their customers by the end of 2020 they face possible fines from the government, which imposed this deadline in the first place – despite problems with the technology behind smart meters.

“This has led to many suppliers making their cheapest deal available if consumers agree to take a smart meter too.

“But households shouldn’t feel like they are being pushed to install smart meters just to meet government quotas, so it needs to be clear whether a smart meter is obligatory when people sign up.

“Switching to an energy deal with a smart meter can have many advantages in terms of cost and helping households use less energy.

“But consumer choice is the most important thing and customers should shop around if they’re unhappy with the way they’re being treated.”

Interestingly, if you switch away from the Big Six providers you can save big without a smart meter.

The cheapest smart meter tariff on the market is £945 a year with Lumo but the cheapest non-smart meter tariff is £846 with Outfox the Market – £99 a year less.

Of course, it’s always best to run a comparison as energy prices not just by supplier but depending on how much gas and electricity you use and where you live.

What are smart meters and do I have to get one?

Smart meters are a device you have installed in your home instead of your normal gas or electricity meter that automatically sends meter readings to your supplier.

You also get a gadget with it that tells you how much every you’re using throughout the day, with the idea behind it that you’ll more easily be able to see how to cut costs.

Energy companies have been forced by the government to offer smart meters to all household by 2020 and it’s hoped 50million will take them up.

But they’ve been riddled with problems since their rollout and according the government’s latest data, as of March 2019 just 15.97million have been installed in homes.

The rollout, which began in November 2016 has also seen some households say they’ve been told they must get a smart meter – even though it’s not compulsory.

While only 1million second generation smart meters have been installed – and without these you may struggle to switch supplier.

We reported earlier this year how over half of energy customers’ smart meter “failed” when switching supplier.

Robert Cheesewright, director of corporate affairs at Smart Energy GB said: “We are really pleased to see energy suppliers passing on savings and offering discounted rates to those customers who choose to install smart meters in their home.

“With some of the cheapest deals around only available to those with smart meters it makes perfect sense to contact your energy supplier today about your own installation and shop around for the best deal for your circumstances.”

For more information, we’ve rounded-up what a smart meter is, how to know if you have one, how long it take to fit and what happens if you switch supplier.

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