Major update on smart meter change that will save households £214billion
Ofgem has delayed a major change to smart meter rules that will save households more than £200million a year.
Under the new rules, energy firms will collect data from smart meters every half an hour – meaning households will get a better picture of their energy consumption, allowing them to cut their bills. You can ask your supplier to take readings every 30 minutes, but this is currently optional. The new rules would require this to be the standard for smart meter customers.
However, the launch date for the so-called Market-Wide Half-Hourly Settlement (MHHS) programme has now been pushed back for the fourth time, and will now not go live until September 2025. Energy firms will not all move over to the new system at the same time.
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Ofgem estimates it will save all households with smart meters an estimated £214million annually. But those without a smart meter won't benefit from the changes, not will people with faulty smart meters. According to figures published by the Department for Energy Security and Net Zero (DESNZ) last month, approximately 3.8 million smart meters were not operating correctly in September 2024.
A spokesperson from Ofgem said: "Ofgem is extremely disappointed that such a significant delay has proved to be necessary. MHHS remains a high priority for Ofgem and the government as a means of enabling the lowest-cost decarbonisation of the energy sector. MHHS participants must comply with the revised MHHS implementation timetable and ensure the earliest possible delivery of MHHS-related benefits to consumers."
It comes as the Ofgem energy price cap is due to rise by 1.2% from January 1. This means the average dual fuel household paying by direct debit will see their annual bill go up from £1,717 a year to £1,738 – an increase of £21. The rise will come into effect during the coldest months and at a time when millions of pensioners have been stripped of their Winter Fuel Payment, worth up to £300.
It is also the second increase in energy bills in recent months, after the price cap went up by 10% – or an average of £149 – in October. Ofgem updates its price cap every three months, so the new rates will remain in place until March 31, when it will then be revised again.
The price cap for someone paying by pre-payment meter is rising from £1,669 a year to £1,690, while for someone paying on receipt of bill, the figure is going up from £1,829 a year to £1,851. The price cap covers around 26 million households in England, Wales and Scotland.
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