Blog Post

Energy Suppliers still installing tens of thousands of SMETS 1 smart meters

Richard Simmonds • March 5, 2021

A new report released by auto switching site Switchcraft has shown that energy suppliers are continuing to install tens of thousands SMETS 1 smart meters despite the regulator warning them to instead install SMETS 2 meters.

What’s the issue with SMETS 1 smart meters?

SMETS1 meters are notorious for losing their smart functionality when a customer switches to a new energy supplier which can result in confusion and inaccurate energy bills as well as creating headaches for both energy suppliers and Ofgem.

To deter energy suppliers from continuing to install SMETS1 meters the regulator introduced the New and Replacement Obligation (NRO) with the aim of pressuring suppliers to take all reasonable steps to install SMETS2 meters.

With suppliers still installing tens of thousands of SMETS1 meters consumers could face difficulties when they want to switch to a new energy supplier.

Energy companies were supposed to stop installing SMETS1 back in March 2019.

Also read: Smart Meter rollout hits 10 million milestone

SMETS 1 installations still common

Despite the NRO and several instances of Ofgem threatening to impose Final Orders on companies still installing SMETS1 meters, firms still installed 57,499 of them over the past six months, with 5,573 of them being installed in January.

Consumers who receive these meters could face difficulty when/if they decide to switch supplier or will face the hassle of the SMETS1 meter having to be updated so that it can connect to the Data Communications Company (DCC).

"Any energy supplier still installing last generation smart meters needs to give a very clear justification for their actions because they can make it much harder for customers to shop around.

"If you're stuck with one, you could be paying hundreds of pounds each year over the odds with no easy way of switching to a better deal. If your supplier offers you a smart meter, I'd suggest you refuse unless they can guarantee that it'll be an updated model," said Andrew Long of Switchcraft.

Also read: Get Connected with Dyball Associates DCC Adapter

Utilita standing firm

Energy supplier Utilita found itself in hot water with Ofgem in December 2020 after it made a ‘moral stance’ by continuing to install SMETS1 meters.

“We are concerned over the robustness and reliability of the new national smart metering communications network, which the second-generation meters use. While we continue to press on with our SMETS2 programme- which continues to be of utmost importance- we will, where it is in our customers’ best interests, install a SMETS1 meter to ensure the best and most reliable service,” Bill Bullen, Utilita founder.

Other energy suppliers such as EDF and Scottish Power said that they no longer install SMETS1 meters whilst the likes of British Gas and EON say they are mostly installing SMETS2 meters but will in rare circumstances still install SMETS1 meters.

A spokesman for Ofgem said, “By failing to install SMETS 2 meters, and continuing to install SMETS 1 meters, a supplier risks causing detriment to consumers who may lose smart functionality if they subsequently switch suppliers."

Also read: Ofgem and Utilita Energy clash over smart meter rollout warning

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