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Smart meter installations fall to lowest level in years

The rate of smart meter installations has fallen to its lowest level since 2016, barring the immediate aftermath of 2020’s Covid-19 lockdown.

During the first three months of 2024, just over 780,000 smart and advanced meters were installed in the UK.

Outside of lockdown, that is the lowest number of installations recorded during a quarter since the Q2 in 2016, when 639,000 homes and businesses had smart meters fitted.

The only quarter to see a lower level of installations during the intervening period was the second three months of 2020 when just 137,000 smart meters were fitted and it was very difficult to enter homes due to lockdown restrictions.

The 780,000 total is also a 10% decrease on the previous quarter and 11% down on the figure in the same three-month period in 2023.

The first quarter’s total comprised 747,300 smart meters for domestic and 33,531 for non-domestic customers respectively.

The decline in the volume of domestic gas meters was slightly greater (10%) than for electricity devices (9%) compared to the previous quarter, according to the figures.

Commenting on the dip in the level of installations, Utilita chief executive Bill Bullen said: “It’s genuinely more difficult to get metres installed and we’re in a situation of diminishing returns now.”

He added that suppliers are having to put increased effort into booking appointments for smart meter installations and ensuring that customers are in.

To tackle declining installation rates, Bullen called for a smart meter to be a requirement when customers install devices, such as electric vehicle (EV) chargers or solar panels, which impose strain on the system.

However, Bullen said that it is possible to improve smart meter uptake and that Utilita broke its post-pandemic weekly record for installing the devices just last week.

As of the end of March 2024, a total of 35.5 million smart and advanced meters had been installed in homes and small businesses. But of the total smart meters installed, 3.9 million are operating in traditional mode.

Gillian Cooper, director of energy at Citizens Advice said “millions are missing out” due to the number operating in “dumb” mode.

“Smart meters can help households save money on their energy bills, but today’s figures show millions are missing out on these benefits because their meters aren’t working as they should,” she said.

“This is just the tip of the iceberg. Our research shows 20% of households with smart meters still have to submit regular manual readings. And nearly a third experienced issues with their in-home display.

“Suppliers have been too slow to fix issues with people’s smart meters.  We need new rules to ensure energy suppliers identify and fix problems as quickly as possible.”

An Energy UK spokesperson said: “Over two-thirds of households now have a smart meter with high levels of satisfaction reported by customers. They are benefitting from greater awareness of their usage – and the ability to save energy as a result – and more accurate bills as well as playing their part in enabling a flexible, cheaper, cleaner and more efficient energy system that benefits everyone.

“It is frustrating if a shortage of installers is leading to customers in some parts of the country waiting longer than they’d like for installations – but the benefits of having a smart meter remain and those particularly apply to prepayment customers.

“We will continue to work with government, consumer bodies and suppliers to ensure the final stages of the roll-out further improve the customer experience for smart households.”

Last week, the government announced that suppliers will be held to a new smart meter code of practice to boost the rollout.