Customers left with shock bills as four million smart meters ‘go dumb’

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Households are being hit with shock energy bills as four million smart meters are not working properly.  

The number of “dumb” smart meters is up from a previous estimate of 2.7 million, following revisions to official statistics released by the Department for Energy Security and Net Zero (DESNZ) published last week.

Bill payers have complained of feeling “terrified” by the devices after receiving shock meter readings putting them thousands of pounds in debt.

Lord Callanan, the minister for energy efficiency and green finance, said he was “deeply concerned” about the figures in a letter to the energy watchdog on Thursday. 

He called on Ofgem to enforce legal requirements for suppliers to ensure that smart meters are working properly.

He said: “The scale of some suppliers’ underperformance in optimising their operation metering estate over a period of time shows these steps may not have been taken universally,” adding “I am deeply concerned about this”.

Broken smart meters do not provide consumers with an accurate reflection of how much energy they have used and can lead to incorrect charges appearing on plug-in displays.

Problems with smart meters have affected high-profile consumers. In December, artist Grayson Perry complained of a £39,000 bill he received on a smart meter. In the same month, broadcaster Jon Sopel revealed his device handed him a £19,274 bill.

Estimates by the National Audit Office (NAO) put the number of faulty smart meters in Britain at just under three million last June. DESNZ has now said that the actual figure in June was 4.31 million – far higher than reported at the time.

It estimates the current number of faulty smart meters is also higher than the old estimate, though down slightly on its revised figure, at 3.98 million. The revisions to the statistics come after corrections were made to data from a minority of suppliers, a final quarter report published by the department showed. 

It comes as the Government’s controversial net zero rollout of smart meters balloons over budget and continues to be plagued by problems.

The installation scheme, which was supposed to have seen a smart meter installed in every home by 2020, is now forecast to cost more than £13.5bn.

This week the energy watchdog said it was mulling abolishing the energy price cap, currently £1,690 per year for a typical household, and using smart meters to implement “dynamic” pricing for energy – a move that would go against ministers’ prior assurances.

In 2018 Government guidance said it was a “myth” 2018 that suppliers would charge higher prices through smart meters.

It said: “Energy suppliers can only charge prices customers have agreed to – and that won’t change. Customers with smart meters can access tariffs that allow them to get cheaper prices at times when demand is low – but it will always be the customer’s choice.”

It is thought that many broken smart meters are “dumb” first-generation models that ceased functioning after consumers switched to different suppliers, the NAO said last year.

Suppliers are legally required to fix or replace broken smart meters for free under a scheme put in place by Ofgem last month. The devices previously only had a one-year warranty.

Energy companies will now have to play catch-up with millions of faulty smart meters that have ceased working in “smart mode” and potentially left consumers with incorrect bills.

Peta Butler, 97, who lives near Tunbridge Wells, said she had been through “two years of hell” dealing with issues with her meter. “It’s affected my health. And it’s completely taken away any confidence I’ve got. If I have to do anything, I just panic,” said told the BBC. 

Her problems began when she switched to a smart meter with a single tariff in 2022.

The device was not installed properly and she received a shock bill of £3,500 between January and June last year, she said.

“I don’t sleep at night really because my body, it can’t let go,” she told the broadcaster, adding she was “terrified” to use electricity as a result.

A Government spokesman said: “Smart meters are helping consumers manage their energy use and save money, while driving the transition to a smarter and more flexible energy system.

“The vast majority of smart meters are working correctly.  However, we are concerned that reporting errors by a minority of suppliers have uncovered more meters not operating in smart mode than previously thought.

“Lord Callanan has today written to Ofgem, urging action to ensure suppliers are held to account if they are not supporting customers with issues as they should be.”