Do I need a smart meter for the Energy Price Cap in July?

Many customers are unsure if they need to have a smart meter fitted before the July energy price cap <i>(Image: Yui Mok/PA Wire)</i>
Many customers are unsure if they need to have a smart meter fitted before the July energy price cap (Image: Yui Mok/PA Wire)
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Following posts this week, that people may be cut off from electricity because they have old-style meters and not smart ones, many customers have been concerned that they need a new meter before the new Energy Price Cap comes in on July 1.

But, it's only people with a particular type of meter, and they are being contacted by their energy supplier to ensure they change their meters ahead of a deadline at the end of June.

If they do not change their old electricity meter could stop working properly, which could prevent their heating or hot water from coming on.

But this does not affect all “old-style” meters, only one particular type of meter, which last year was installed in around 800,000 homes across the UK.

Who needs a new electricity meter before July 1?

The changes are set to impact Radio Teleswitch (RTS)  meters across the UK. These meters are controlled by long-wave radio signals, which tell the meter when to switch between peak and off-peak prices.

In October 2024, energy regulator Ofgem said that around 800,000 RTS meters need to be replaced across the country.

The technology that sends signals to the meters was introduced in the 1980s and is now getting to the end of its natural lifespan, trade body Energy UK has said.

“This means that the equipment that produces the radio signal can’t be adequately maintained any more,” Energy UK added.

This means that on June 30 2025, the radio signal and its supporting infrastructure will close down.

Households have been warned that if they do not switch to a new meter, their heating and hot water might either stay on all the time or not come on at all. They could be charged at the wrong time of day, which could lead to higher bills.

Most households will see their meters changed to a smart meter. However, some may be unable to get a smart meter. In those cases, they will have a different suitable meter installed instead.


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What is the energy price cap, and does it need a smart meter?

The term is quite confusing, and it's important to note it's not the maximum price you will pay - it's an average. If you use more, you will pay more.

The cap was introduced on 1 January 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.

The next change is due to be announced later this month and come into force on July 1.

It has no bearing on meters or whether you should fit a smart meter.

But it only limits what you pay for each unit of gas and electricity that you use.

The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you're on a standard variable tariff.

The energy price cap also sets a maximum daily standing charge.

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