Energy firms ‘use smart meters to keep customers captive’

ENERGY companies are “abusing” their position and creating a “captive” market by rolling out smart meters that make it more difficult to switch suppliers, a former Liberal Democrat energy secretary has said.

Sir Edward Davey, who laid the foundations for the nationwide roll-out, accused the companies of attempting to create a “barrier to switch- ing” to ensure they keep their customers.

The energy companies were put in direct charge of the £11 billion smart meter programme after intense lobbying from the Big Six suppliers. As a result customers have found that their meters “go dumb” and stop working when they switch suppliers.

Sir Edward, who served as energy secretary between 2012 and 2015, said: “The energy suppliers would like to create a barrier to switching. There is a risk here that the incumbents are abusing the power to create a captive market. I am genuinely worried that what gave the promise of more competition and reduced consumer bills could end up in less competition and higher bills.” Sir Edward said that he does not have a smart meter in his home and said he understood why people might be “reluctant” to get one.

Smart meters are designed to show householders how much their energy costs in real time, and transmit meter readings electronically.

The programme to install 53 million devices by 2020 is way behind schedule, and there are calls to pause the roll-out until a new generation of smart meters is ready.

Second-generation smart meters, known as Smets2, were supposed to be ready by 2014, but by January of this year only 80 had been installed.

Sir Edward said: “The best solution would be Smets2 roll-out – why the hell is it so late? It’s pretty shocking.”