Smart meter adverts can’t say they are ‘free’, rules watchdog
Marketing of £200 units must change because costs are passed on in bills
ADVERTS for the Government’s smart meter roll-out have been wrongly claiming the meters are “free”, advertising regulators have said.
The Daily Telegraph can reveal that the Advertising Standards Authority (ASA) has told Smart Energy GB, the industry body which produces the adverts, to stop making the claim in TV, radio and print adverts.
The smart meter roll-out was originally estimated to cost energy companies £11 billion, equivalent to around £200 per household, with providers expected to pass on the costs to customers through higher bills.
Energy companies have recently enforced a string of price increases, saying the cost of smart meters was a contributing factor.
The ASA said that because people would be paying for smart meters indirectly through their bills they were not a “genuine free offer”, meaning they should not be described as free.
The case was resolved via a so-called “informal ruling”, meaning Smart Energy GB avoided having the details of the case published on the ASA’S website.
An ASA spokesman said: “The use of the term ‘free’ in ads can sometimes cause confusion for consumers and should not be used unless something is a genuine free offer. It’s important consumers are not misled so, in this case, the advertiser agreed to amend their ad.
“We recommend that they use the term ‘at no extra cost’ instead, because consumers will be paying for the smart meter in the same way that they already pay for their current meter, which means it is not technically ‘free’.”
Between April and August Smart Energy GB produced TV, radio and print adverts which the ASA said on Oct 10 must not appear again in their current form.
In August a smart meter advert appeared on TV urging consumers to “contact your energy supplier about getting your free smart meter”.
Smart Energy GB also paid Kirsty Allsopp and Phil Spencer to front a smart meter PR campaign over the summer, which resulted in the publication of dozens of newspaper articles quoting the pair. Allsopp said: “Getting a smart meter is free and if we all got one, we could save Great Britain nearly £560 million a year.”
From now on the official smart meter adverts will use the words “at no extra cost”.
Richard Neudegg, head of regulation at uswitch.com said: “While they do bring benefits such as more accurate bills and broader energy efficiency, we’re all paying for smart meters so it is extremely important that consumer needs are prioritised throughout the roll-out.”
A spokesman for Smart Energy GB said: “As a responsible advertiser, we always want to be crystal clear with our advertising.
“We were very happy to take on board the ASA’S advice and help make the benefits of smart meters even clearer to consumers.”