Smart meters to be fixed for free after spate of breakdowns

HOUSEHOLDS are to be offered free replacements for broken smart meter displays after a rash of failures threatened to leave many consumers with no way of monitoring their energy consumption.

The new policy, which replaces a previous one-year-only warranty, was announced as energy regulator Ofgem unveiled a sharp cut in the price cap that will bring average bills down by £238 a year. The meters, which allow households and their energy suppliers to monitor usage in real time, are seen as essential for the switch to net zero and the rise of electric vehicles, whose owners need to know when tariffs are cheapest for charging their cars.

About 33m smart gas and electricity meters have been fitted since the rollout started over a decade ago – but millions have since become “dumb”, meaning they have lost their smart functions, according to consumer champion Which?. It found a key cause was that smart meters could not cope with customers changing supplier. Until now, households have been charged for repairs if a meter display broke more than a year after installation – a deterrent to having them put in.

Eight suppliers covering 60pc of the energy market have signed up for Ofgem’s new free repair scheme so far. They are E, E.On, Good Energy, Octopus, Ovo, Scottish Power, Utilita and Utility Warehouse.

Meanwhile, Ofgem announced that the energy cap will fall by £238 from April, meaning households will pay an annual average of £1,690. The 12pc drop in the price cap takes bills to their lowest level in two years, after the supply chaos that followed Russia’s invasion of Ukraine. Imports of gas from America, as well as a relatively mild winter in Europe, have helped boost stocks of fuel, bringing down prices.

As a result, economists expect inflation to fall to, or even below, the Bank of England’s 2pc target for the first time since July 2021, opening the way for the Bank of England to cut interest rates.