Urgent energy bill warning over huge unexpected bills with millions at risk – how to avoid it
MILLIONS of homes are at risk of shock energy bills linked to their smart meter, a charity has warned.
More than half of British homes now have one of the gadgets but are being exposed to so-called catch-up bills when problems arise the tools, according to Citizen’s Advice.
Faults and poor service from suppliers can mean automatic readings are not taken for long periods of time.
And this can mean that households may underpay.
Shock catch-up bills of £1,000 and upwards have been sent to customers after smart meters went unchecked by suppliers for more than a year in cases seen by Citizens Advice.
One in five households with a smart meter – working out as 2.86 million homes – still have to regularly submit manual meter readings because their device is not doing this automatically, a survey by the charity found.
And almost a third experienced issues with their in-home display (IHD) screen that helps households track their energy usage and costs.
Currently suppliers can back bill customers for an entire year, whether they have a smart meter or not, but Citizens Advice said this period should be cut to six months to avoid hefty catch-up bills.
A quarter of people who asked the charity for help with smart meter issues had billing problems.
The charity now wants new rules that force providers to identify and fix problems as quickly as possible.
Consumers are often left waiting in limbo while suppliers blame issues on the Data Communications Company, which is responsible for the data network the tech relies on.
Government figures show that more than 10% of smart meters were not working properly by the end of last year, but Citizens Advice said this is just the tip of the iceberg.
Citizens Advice wants suppliers to be forced to meet new Guaranteed Standards of Performance, which would ensure timely diagnosis of issues and repairs, with affected consumers automatically compensated if these were not met.
When things go wrong, consumers often struggle to find out what the problem is, who’s responsible and how long it will take to fix it.
Citizens Advice wants to close what it calls an “accountability gap” between suppliers and the Data Communications Company, so all issues can be diagnosed in a timely manner.
Citizens Advice chief executive Dame Clare Moriarty said: “The whole point of smart meters is to empower households to save energy and money, but in reality millions are missing out on those benefits due to problems with technology and poor supplier service.
“Energy companies are very keen for customers to get a smart meter but when issues arise they are often nowhere to be found. That has to change.
“Suppliers have been far too sluggish in fixing issues with problem meters.
“New obligations and stronger accountability measures are needed to restore public trust in this vital tool to reach net zero.”
HOW TO PROTECT AGAINST SHOCK BILLS
Citizen’s Advice has the following advice if you are having issues with your smart meter.
Your smart meter will be in a fixed position, usually in a cupboard inside or outside your home.
It is linked to an in-home display (IHD) that shows you how much energy you’re using.
If the screen stops showing your energy usage, you can try to fix this by moving your IHD so that it’s closer to your meters
If you can’t fix the problem, contact your supplier and tell them.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
In many cases they can fix it by turning your communications hub off and on again – you won’t usually be able to do this yourself.
If they can’t help fix it or this hasn’t worked, it might be because your meters have stopped working in smart mode.
You can check if your meter is working in smart mode at smartmetercheck.citizensadvice.org.uk. If it isn’t you will need to send regular readings yourself to avoid costly catch up bills.
We explain here how to take and submit a meter reading.
HOW TO COMPLAIN
If you have ongoing issues with billing and you’re unhappy with your suppliers response you can escalate the issue.
Similar to financial services firms, energy companies have to have a complaints procedure for customers to follow.
When you make a complaint, make sure you follow this so they have the information they need to resolve the issue.
Simply explain what the problem is and what you want your supplier to do about it.
Check your energy supplier’s website for an explanation on how to launch a complaint.
Energy suppliers have eight weeks to respond and come to a decision.
If it doesn’t or you’re not happy with the response, you can take the firm to the Energy Ombudsman.
The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.
Before you can submit your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.
You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.
You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.
The Energy Ombudsman then bases its decision on the evidence you and the company submit.
If you choose to accept its decision, your supplier then has 28 days to comply.
If it refuses to, it can be enforced in court.