Economy 7 customers now WON’T lose cheap off-peak energy in March as firms extend deadline by a year

Households who were told their off-peak energy meters might stop working properly have been given an extension – but must still get a smart meter in the next 12 months or risk losing cheaper overnight electricity.

Earlier this week, This is Money reported the technology powering 900,000 older meters used for Economy 7 and 10 tariffs was set to be switched off from 31 March.

Many of these meters run on technology called Radio Teleswitch (RTS), which uses BBC longwave radio to tell energy firms when a household is using peak or off-peak energy.

That principle underpins many off-peak energy tariffs, which offer cheaper electricity overnight, letting homes run appliances for less. The most well-known offpeak tariffs are Economy 7 and Economy 10.

Higher bills: Economy 7 or 10 customers who don’t get a smart meter will lose access to cheaper off-peak electricity 

RTS meters are used for these off-peak deals, though smart meters also work, as do older mechanical meters with a clock, which will carry on working regardless. 

The deal letting energy firms use the RTS system was due to run out at the end of March 2024, which could have left many homes with patchy access to off-peak energy deals.

Energy firms even warned some household that they might lose heating and hot water if they do not upgrade their meters.

But after last-minute crunch talks the energy firm trade body Energy UK earlier this week announced that this deadline would be pushed forward to March 2025.

However, any homes with an RTS meter now will still have to get a smart meter in the coming months or risk their current one not working properly from next March.

Energy regulator Ofgem expects energy firms to replace all RTS meters with smart meters at least 3-4 months before the service is switched off..

That means all homes with RTS meters need to get a smart meter fitted in the next 12 months. 

The alternative is to keep their current meter, but risk losing full use of Economy-type energy deals if the RTS system is turned off in 2025.

On the way out: Older RTS meters are due to be replaced with smart meters by energy firms

An Energy UK spokesman said: ‘We can confirm that agreement has now been reached that ensures the RTS service will continue into 2025.

‘Whilst discussions are ongoing to confirm when the RTS service will end, electricity suppliers are contacting households and businesses with RTS to arrange for a smart meter upgrade and we would strongly encourage customers to respond without delay. 

‘Equally any customers who think they might be affected by this should get in contact with their supplier as soon as possible.’

An extension to the 31 March deadline had to happen as energy firms had no hope of fitting enough smart meters in time.

Replacing all these old RTS meters with smart ones by 31 March would have required energy firms to fit around 21,500 smart meters a day and to only focus on RTS customers.

But these firms are only managing just over 9,000 smart meter installations a day for all customers, according to the latest Government figures.

Some energy firms have already replaced 75 per cent of their customers’ RTS meters, while others have only managed 10 per cent, according to Ofgem statistics. 

If a customer with an RTS meter has any concerns about swapping to a smart meter, Ofgem’s guidance is that they take it up with their energy firm.