Energy regulator makes 'contingency plans' for households left with RTS meters after switch-off next month

The energy regulator has issued an urgent warning to thousands of households still using old meters ahead of a huge change next month.

The 40-year old Radio Teleswitch Service (RTS), which piggybacks off the long-wave channel for BBC Radio 4, sends meter readings to suppliers, but will end on 30 June.

There were 430,000 households still using RTS meters by the end of March, according to Energy UK, and suppliers say they are struggling to switch enough customers ahead of the deadline.

It's understood that the regulator is making contingency plans for customers with RTS meters if their supplier has not switched them to a smart meter by the end of June.

Campaigners have argued that households that do not switch could be left without heating or hot water, although it is more likely to affect suppliers who will not be able to take meter readings.

The energy regulator Ofgem previously told This Is Money it expected to transfer 100,000 customers using RTS every month until it is switched off on 30 June.

Energy UK said more than 1,000 RTS meters were being replaced each day, but it would need to do five times more to reach the target.

The regulator did not say whether it would fine suppliers or postpone the switch-off date again.

An Ofgem spokesman told This Is Money: 'The RTS upgrade programme is an urgent consumer welfare issue and Ofgem is determined to explore every avenue to ensure that customers are protected when this ageing 40-year-old technology is phased out from the 30 June 2025.

'Ofgem set up a taskforce alongside Energy UK, bringing together suppliers and the wider sector to accelerate the rate of meter upgrades to its highest level yet, and solve complex technical barriers posed in certain remote regions.

'In recent weeks we have seen evidence of suppliers significantly stepping up their activity in these remote areas, such as the Highlands and Islands of Scotland, and solutions to improve smart meter connectivity in the north have been launched. So we urge any customers who may have previously struggled to get their RTS meter replaced to please contact their supplier again to arrange an appointment.

'Ofgem has also demanded action plans from every supplier, which we are scrutinising on an ongoing basis to ensure that robust contingencies are in place to protect any customers who remain on RTS meters after the phased switch-off process begins.'

Smart meters will soon become the default as suppliers move households onto them once the RTS is switched off.

Suppliers have no obligation to move households to older traditional meters, and smart meter installation targets mean they're unlikely to do so.

Energy firms use RTS to switch a meter between peak and off-peak rates so customers can have energy deals that charge them less at certain times.

Read More

There are concerns that the RTS switch-off will mean an end to these tariffs.

Suppliers have been told that suppliers must take reasonable steps to ensure RTS customers stay on the same or a like-for-like tariff, This Is Money understands, but this might not be possible in some cases.

Ofgem and suppliers say that switching to a smart meter should give customers access to a wider choice of money-saving 'smart meter only' tariffs.

It means that households have been left with little choice but to move to smart meters, although they can switch it to 'dumb mode', which means it will not automatically send readings to the supplier.