Energy bill hikes to hit hundreds of thousands of households if they don't act
Hundreds of thousands of households potentially face major energy bill hikes unless they take action now. According to the latest figures, over 300,000 homes still have Radio Teleswitch Service (RTS) meters.
This service charges households with linked electricity meters cheaper rates depending on the time of day. The devices, such as Economy 7 and other multi-rate energy tariffs, pick up the different energy rates through the RTS signal.
Some RTS electricity meters can also automatically turn heating and hot water systems on and off during certain hours. However, the signal is set to be shut off from June 30 this year as the technology which produces the signal can no longer be maintained.
Homes with these meters need to upgrade to a smart meter before the switch-off, as their meter will no longer function as intended after the deadline
Some meters could become disconnected, but depending on when the RTS signal dies, some could also be left jammed on peak-time electricity rates. This could lead to huge bill hikes for households affected by the switch-off.
Energy suppliers across the board have warned customers of the upcoming switch off over the last few years with many households being put onto a smart meter. However, Ofgem was forced to step in last year as suppliers had been initially slow at switching people over.
Scotland 's national advice service has recently warned of a 'looming crisis' as thousands of homes have still not had the meters replaced, with "vulnerable" households among those at risk of being 'left in the cold'.
In a letter to Ofgem chief executive Jonathan Brearley, Andrew Bartlett, chief executive of Advice Direct Scotland, warned that many households are still unaware of what will happen if their RTS meter is not replaced. He also called on energy suppliers to identify and prioritise vulnerable customers for meter upgrades.
He wrote: 'With less than a month to go until the RTS signal starts being switched off across the country, it is increasingly clear that progress on replacing them has not been fast enough.
'Ofgem needs to urgently clarify if it intends to stick to the June 30 deadline and if a phased approach is being taken, which parts of Scotland will be affected first."
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Ofgem recently released an advert featuring Lorraine Kelly to warn households about the switch-off. In the ads, the Scottish TV presenter urges people to contact their supplier, with the tagline adding: 'Don't delay. The RTS switch-off is on the way.'
However, Bartlett also noted that there was a lot of confusion regarding the switch off, as some customers have been told they cannot have their meter replaced until after June 30.
He added: 'At a time when thousands of people are struggling with energy debts and the cost of living, nobody should be left out of pocket for replacing their meter either.
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'Our message to consumers is that if you know someone with an RTS meter, especially if they are vulnerable, encourage them to get it replaced before the deadline if they can.'
Although the advertised date is June 30, the process will happen by area from July 1 through to September 30.
According to the latest figures from Energy UK, in April, 392,000 households in Great Britain still had RTS meters. Currently, energy suppliers are switching around 1,000 old RTS meters each day. However, to ensure that all the remaining homes with them are covered by the deadline, this number would need to rise to 5,000.
A spokesperson for Energy UK recently said: 'It will undoubtedly be challenging to replace all these meters by 30 June,'
"It means getting access to every single property to carry out the installation, many of which are in remote areas, and ultimately it requires all customers to respond to contact from their supplier.'
"We urge any customers who may have previously struggled to get their RTS meter replaced to please contact their supplier again to arrange an appointment."
"Ofgem has also demanded action plans from every supplier, which we are scrutinising on an ongoing basis to ensure that robust contingencies are in place to protect any customers who remain on RTS meters after the phased switch-off process begins."
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