In an open letter to Energy Secretary Ed Miliband, Martin Lewis highlights concerns over the high failure rates of smart meters and negative consumer sentiment.
While smart meters have potential for energy efficiency and offer energy-saving tips for customers, he criticises the rollout for poor management and claims many consumers face issues like malfunctioning meters and inaccurate billing.
Lewis urges the Government to focus on fixing existing meters rather than just installing new ones, noting his research shows failure rates could be as high as 19%, well above the official estimate of 10%.
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Last year Homebuilding & Renovating reported that a 10th of smart meters are faulty, according to Government figures, but Martin Lewis claims this figure is half the actual number.
He claims the Government's figures only include the "narrow definition of smart meters in 'dumb' mode (ie, not sending automatic readings to the supplier)" and therefore is not accurate.
He claims the real figure is 19% according to a Money Saving Expert poll. He says the reason this figure is higher "is that it includes everything people feel has gone wrong, including in-home displays that won't communicate or connect, incorrect data on tariffs or usage, and prepay top-ups that don't register correctly".
Lewis also claimed that he is contacted "regularly" by people who ask "What's the best tariff I can get without having to fit a smart meter?" with them claiming they are willing to pay more to avoid getting one.
Why are smart meters failing?
The National Audit Office (NAO) reported that the rollout of smart meters in the UK and found many already installed were not functioning properly.
The findings revealed that many smart meters fail to send energy usage data, rendering them similar to traditional meters.
Additionally, around 500,000 first-generation meters lose their smart functionality when users switch suppliers. Technical issues, including a lack of automatic readings and inaccurate billing, affect about one in three users. The report also highlights a shortage of smart meter installers.
Lewis urges Government to focus on installing 'working' smart meters
Lewis argues that the focus should shift from merely installing smart meters to ensuring they actually work, stating: "Too many resources are focused on installations, not repairs, leaving more existing meters not working properly."
Lewis suggests that the government should revise its targets to incentivise energy companies to repair broken meters, not just install new ones.
He writes: "I'd suggest shifting firms' targets from smart meter installations to the overall number of 'working' smart meters, which would encourage firms to do both installations and repairs."
This shift would ensure more meters are operational and reduce consumer frustration, billing errors, and resentment caused by aggressive installation tactics. He adds: "Smart meters, done right, offer an exciting future that should benefit energy security... It's just a shame the overly-long history of the smart meter roll-out is one of sloth, poor decisions, poor technology, and over-expense."
By focusing on making smart meters functional, Lewis believes that public perception could improve, leading more consumers to adopt the technology. This approach, he argues, would also support broader goals like energy security and more efficient energy use.
