Smart meter warning for 530,000 energy customers from watchdog as they risk being cut off
HUNDREDS of thousands of energy customers remain at risk of disconnection due to a major electricity meter switch-off, according to the regulator.
Ofgem is proposing new rules for energy suppliers to manage the phase-out of Radio Teleswitch Service (RTS) meters, which will stop working after June 30, 2025.
Around 530,000 customers, many on Economy 7 or other multi-rate tariffs, currently rely on these meters, which offer cheaper electricity rates at certain times of day, according to Energy UK.
RTS meters work by receiving a signal broadcast alongside BBC Radio 4's long-wave channel.
This signal triggers the meter to switch between different electricity rates.
Some RTS meters also control heating and hot water systems. Once the RTS signal is switched off, these meters will no longer function correctly.
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This could leave some stuck on peak-time rates, leading to significantly higher bills, while others may find their heating permanently on or off.
In an open letter to stakeholders yesterday, Ofgem outlined new plans designed to protect consumers from potential disruptions and rising energy bills as the RTS system nears its shutdown.
The main aim is to ban suppliers from using RTS meters after the switch off, a move that risks leaving hundreds of thousands of households without power.
To prevent this outcome, the regulator is pushing to accelerate the replacement of these outdated meters.
Ofgem has proposed that when a customer with an RTS meter switches energy suppliers, the new provider must replace the meter within 30 working days.
Suppliers will also be required to make all reasonable efforts to replace RTS meters, even in challenging circumstances.
Crucially, Ofgem is also proposing that suppliers offer replacement tariffs that are no less favourable than existing RTS tariffs.
This aims to ensure that consumers aren't financially penalised for having their outdated meters replaced.
The regulator is currently consulting with energy suppliers on these proposals before formally enforcing the changes.
In recent weeks, suppliers have been racing to transition customers to smart meters ahead of the looming deadline.
At the end of January, Octopus Energy put out a plea to thousands of its own customers.
Similarly, over 65,000 E.ON Next customers are also being urged to come forward and get a smart meter installed.
How do I know if I have an RTS electricity meter?
You'll be able to tell if you have a meter that relies on the RTS quite easily.
The oldest RTS-powered meters have a switch box labelled "Radio Teleswitch" located next to the physical electricity meter.
Others may the RTS switch box included within the electricity meter as a single box on the wall.
If you're unsure about the type of electricity meter in your home - call your supplier as they'll usually have this information on hand.
RTS is also sometimes called dynamically teleswitched (DTS).
What's the alternative to RTS?
Smart meters offer the same features as RTS in that it can record the different prices at different times of day offered by Economy 7 tariffs.
They work using a digital signal and can also show your energy usage in real-time, something many users find useful for reducing it and saving money.
Smart meters are being rolled out by suppliers across the country and around 36million households have one, though they are not without issues.
Around one in ten are thought to be "dumb" according to recent data from Ofgem.
Issues include broken display and trouble connecting to the network in some areas, while many first-generation smart meters have out of date technology, though this is unlikely to be an issue with ones fitted now.
Suppliers should make efforts to fix smart meters that are not working, but you may have to make meter readings in the meantime to ensure accurate bills.
Monitors - the part of the smart meter that show readings and usage - less than 12 months old should be replaced or fixed for free.
You can ask your supplier for a traditional meter instead, but as smart meters are replacing them, they are not obligated to give you one.
What is a smart meter?
SMART meters are gas and electricity meters that can digitally send readings to your energy supplier.
They show you how much energy you are using in pounds and pence, so can be used to help reduce your energy bill.
Unlike traditional meters, which simply register a running total of energy used, smart meters can record half-hourly price and consumption data and provide automatic meter readings to your energy supplier.
Most homes have two meters, one for gas and one for electricity – both will be replaced with smart meters.
You will also be offered an in-home display to show you the cost and amount of energy you are using at any given time
It will update every 30 minutes for gas and in near real-time for electricity.
Can I keep my RTS tariff?
Suppliers have been told by Ofgem that they must take resaonable steps to ensure they are on a like-for-like tariff after moving to a smart meter.
In some cases where this isn't possible, they must work with the customer to agree an appropriate tariff.
There may be more smart meter-only tariffs available to some customers that could save them money.
If you haven't been contacted by your supplier already, you don't need to wait for a letter asking you to switch, you can contact them directly.
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An Ofgem spokesperson said: "We expect suppliers to consider a range of innovative solutions to ensure their RTS customers get on to a metering and tariff arrangement appropriate for them.
"Smart meters are the best replacement for RTS meters – giving consumers more control of their energy usage and opening access to new money-saving tariffs – however, customers should speak to their supplier to understand the options that are available."