Smart meter warning as millions could be paying 5% more on energy than what is shown on their display screen
Smart meter warning as millions could be paying 5% more on energy
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Millions of smart meter customers could be paying five per cent more on their energy bills when they don't need to, new research has shown.
There are around 33 million smart meters in the UK which all work the same way, however, Scottish Power does things a bit differently.
New research from MoneySavingExpert.com (MSE) has revealed that Scottish Power smart meter customers are likely to be paying five per cent more than is shown on their linked monitor - also known as 'in-home display' (IHD).
MSE asked the nine major energy suppliers if they display VAT on the IHDs for its credit customers – those who pay by Direct Debit or on receipt of a bill.
Their research found that Scottish Power is the only major supplier that doesn't display VAT.
On average, it means affected households will need to add an extra five per cent to their bills to account for the missing VAT.
New research from MSE has revealed that Scottish Power smart meter customers are likely to be paying five per cent more
PAFor those with typical energy use, that's roughly an extra 20p a day if they pay by Direct Debit and about an additional 22p a day if you pay on receipt of bills.
Suppliers don't have to include VAT, charged at five per cent, on their smart meter monitors, according to energy regulator Ofgem – though Scottish Power's prepayment meter customers do have VAT included in their IHD prices.
ScottishPower's Smart MAP (Meter Asset Provider) business finances and manages 3 million smart meters across Great Britain.
If people are worried about not being able to see VAT on their IHD, there are two options the MSE website has given for people to consider.
The first is "check your bills".
MSE said: "Make sure you check your bills carefully to understand how much you're spending and how much VAT is added.
"Scottish Power adds that if your IHD unit rates do not match what is on your bill, this is normally due to a recent price or product change and you should allow up to seven days for these changes to be reflected on your monitor."
Secondly, Britons can "consider switching".
They continued: "If having VAT shown on your in-home display is important to you, you could move to a different supplier.
"When we checked with British Gas, EDF Energy, E.on Next, Octopus Energy, Ovo Energy, So Energy, Utilita, and Utility Warehouse, they all told us VAT is included in IHD prices for all customers (whether they pay by credit or in advance)."
People can check their Scottish Power bill to see how much they're paying for your energy, including VAT.
They can do this online, or via the Scottish Power app available on Android and iOS.
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Three million faulty smart meters have been installed in households across BritainPAHowever, if having VAT shown on one's IHD is important to them, they can change their supplier.
Martin Lewis' team said that British Gas, EDF Energy, E.on Next, Octopus Energy, Ovo Energy, So Energy, Utilita, and Utility Warehouse, all have VAT included in IHD prices.
Customers can use the website's Cheap Energy Club to find the best tariffs available by visiting www. clubs.moneysavingexpert.com/cheapenergyclub.