Smart meter customers have much more limited options and pay more on average when it comes to switching energy tariffs, research from Comparethemarket.com has found.
A study of 223 energy tariffs by the comparison service found just one in six (37) were available to customers who have had a smart meter installed.
On average, customers with a smart meter pay £18 more than those without.
The research found that the average annual switchable dual fuel tariff price for those with smart meters is £1,089, compared with households without smart meters being offered tariffs for £1,071 per year.
As of 31 March there were 24.2 million smart and advanced meters in homes and small businesses in Great Britain, of which 19.8 million were in smart mode.
In total, 44 per cent of all meters are smart or advanced which is a five percentage point increase from the same time last year.
Peter Earl, head of energy at Comparethemarket.com, said: “The industry should be encouraging people who haven’t yet to switch to smart meters, but this does not seem to be the case with tariff variety and pricing. There needs to be more incentives to encourage people to switch, including competitive pricing.”
He added: “The original target to ensure all UK homes had been offered smart meters by the end of 2020 was clearly unrealistic, since only two-fifths of households have them installed. The rollout has been extended so there are fewer excuses for missing the next deadline, even if timings are tight.
“Smart meters are a useful tool to help people manage their energy consumption, but millions of homes are stuck with smart meters that operate in the same way that a traditional meter does, which doesn’t allow them to receive the full benefits promised.
“We need to see dedicated action to ensure these meters are soon enrolled into the smart systems and so that customers get the smart benefits and do not lose them when switching supplier.”
Earlier this week the government revealed that energy retailers have an additional six months under the current smart meter rollout obligations before the new framework will be implemented.
From 1 July the current ‘all reasonable steps’ obligation will be extended by six months due to the impact of the pandemic.
Following this period the new four-year framework will begin on 1 January 2022 and will set energy suppliers annual, individual installation targets on a trajectory to 100 per cent coverage. This will be subject to an annual tolerance level which creates a minimum number of installations each supplier must meet in each year.