Not having a smart meter could be costing you £100 EXTRA every year
NOT having a smart meter could be costing you £100 more in energy bills every year, according to new figures.
Many gas and electricity companies are offering the cheapest tariffs to households that pledge to have the new technology installed, The Sun has found.
The Government is pushing for 53million smart meters to be installed in millions of homes and businesses by the end of 2020 at a cost of £11billion to the taxpayer.
It's putting pressure on energy companies to offer incentives such as cheaper deals for smart meter households - but many firms will miss the deadline.
The meters are designed to show householders how much their energy is costing them in real time and transmit meter readings electronically, but critics have hit out at them, saying they could end up not saving people much at all.
Now an analysis of the cheapest tariffs reveals that switching to a smart meter - which is free to have installed - can potentially shave money off your energy bill depending on your supplier.
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The price difference between tariffs for standard and smart meters can be up to £112 depending on the energy company, The Sun found.
The cheapest smart meter tariff is offered by Toto at £980 per month for its Smart Online Fixed Saver tariff.
But the supplier also offers a non-smart version of the same tariff at the same price.
Other companies have lowered the prices of tariffs which require you to have a smart meter installed, making them cheaper than their other lowest priced options.
First Utility offers a £1,010 per month fixed Smart First tariff for those who pledge to have a meter installed.
Its next cheapest tariff for those without a smart meter, its £1,122 per month First Fixed tariff, is £112 more expensive.
Many of the Big Six suppliers also offer cheaper tariffs for people who can sign up if they promise to have a smart meter installed within a few months of claiming the tariff.
There are two exceptions: E.On currently doesn't have any live smart meter tariffs available.
And British Gas's fixed two-year £1,255 per month Everything Online Green tariff for those who pledge to have a smart meter installed is £56 more expensive than its cheapest £1,199 per month Home Energy fixed one-year tariff.
A word of warning though: many of these cheap smart meter tariffs are only available to those who do not already have a smart meter to encourage them to have one installed.
Criticisms of the Government's smart meter roll-out
The British Infrastructure Group has criticised the programme for a number of reasons including:
- More than half of "first generation" smart meters "go dumb", meaning that they stop displaying data and sending it to suppliers.
- Up to 10 per cent of smart meters don't work because they are in areas without strong enough mobile phone signal.
- By the end of this year only 22 per cent of homes will have smart meters installed, making it likely that the 2020 deadline will be missed.
- There is no unifed way for customers to check who is accessing thier data.
- Delays and cost increases to the programme mean that the expected saving on an annual duel fuel bill in 2020 has fallen from £26 to just £11.
- The cost of the programme could eventually outweigh the benefits
People who already have a smart meter won't be able to take advantage a lot of the time - and could find that they don't end up saving as much after their tariff expires if they choose a fixed one.
Some critics believe that having a smart meter will actually only save households £11 a year on average.
The British Infrastructure Group said that delays and the cost increases of the roll-out programme reduced the average savings from £26 a year.
There are also fears that energy firms will be able to introduce "surge prices" that will send bills soaring at peak times such as Christmas Day and Easter when millions are in the house watching TV and using ovens.
Some people have warned that cyber hackers will be able to use smart meters to hack into your home and steal your personal information.
Despite these concerns, energy experts say that you may still be able to save more if you have a smart meter installed.
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Rik Smith, uSwitch's energy expert, said: "Smart meters are an important upgrade to the country’s energy infrastructure and will help consumers reduce their energy use – and ultimately their bills.
"Many suppliers are making smart meter tariffs among the cheapest deals they offer as an incentive for households to sign up to get one installed, although not all of these plans are available to people who already have smart meters.
"Energy customers considering getting a smart meter should also look out for whether they will be able to switch supplier and for their meter to remain in 'smart mode.'
"Many first generation meters currently revert to 'dumb' mode if a household changes energy company, although the second generation meters due to be rolled out from early 2019 should allow households to switch supplier and remain in smart mode."
Energy & Clean Growth Minister Claire Perry said: “Smart meters are saving consumers money by putting them in control of their energy bills.
"They will bring new innovative products and tariffs into the market – helping to make the grid more flexible and saving families money on their bills.”
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