Martin Lewis explains why smart meters get 'bad word of mouth'

Money Saving Expert founder Martin Lewis has explained why smart meters get such 'bad word of mouth' among customers.

The energy meters have been rolled out for years, with most customers taking the meters and using them to track their usage without issue. But there is a vocal minority of customers who don't want a smart meter or refuse to have one installed, to the point where Martin Lewis actually points out which energy tariffs do and don't require a smart meter to be installed when he recommends them.

Last night, Ofgem announced that it is planning to implement a new scheme to tackle smart meter issues, including a £40 compensation scheme for customers who have been left with broken smart meters, or delays in having smart meters installed.

Though Martin Lewis is on a self imposed career break this week, he shared reaction on the news with the Express via MSE, in which he explained why smart meters get such a bad reputation among customers, and why the new scheme is aiming to curb that.

Martin Lewis, founder of MoneySavingExpert.com, said: "Broken smart meters were high on the list of issues I raised with Ed Miliband when he first became Secretary of State. He promised me he'd investigate, so I was pleased when they told me this announcement was coming.

"Far too many smart meters, likely one in five, don't work as they should - a problem not just for all the homes with broken ones, but for the smart meter rollout. With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one."

Martin then added that he wants companies to 'shift their focus' from installing more and more meters to actually fixing broken meters.

He added: "We need to shift firms' focus from just installing smart meters to promptly fixing those that are broken - not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working. That's the aim of this plan, and while it's taking a softer approach than we proposed, it is an improvement and we'll be monitoring to see if it delivers.

"I'm also happy the Government has taken up our suggestion of a Consumer Charter, giving people definite rights and timetabling, and look forward to working with them to make sure consumers understand it when it launches."

Ofgem has unveiled proposals to bring in rules that will see consumers eligible for £40 compensation if they have to wait more than six weeks for a smart meter installation, as well as faulty meters and those not operating in smart mode which are not fixed within 90 days.

It comes as part of a crackdown on broken smart meters, which has seen the regulator help enforce the repair or replacement of more than 600,000 faulty meters since July last year.

The plans mean that suppliers will need to improve smart meter standards or pay out from early 2026, according to Ofgem.

Minister for energy consumers Miatta Fahnbulleh said: "Consumers are at the heart of our mission to deliver an energy retail market that works for everyone, as we accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes.

"That's why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed."

U-switch said its research found that one in five households with a faulty smart meter had been waiting more than two years to have their device fixed.

Richard Neudegg, director of regulation at Uswitch.com, said: "Building consumer confidence is key to convincing the remaining households to get a smart meter.

"These proposals by Ofgem bring more focus on getting faulty smart meters fixed, and give consumers the confidence to take the plunge."