The energy regulator is carrying out an investigation into smart meter tariffs after it emerged that some of the plans on offer are more expensive than traditional plans.
This is despite smart meter tariffs being marketed as a way for customers to save money.
But it has emerged that some of the time-of-use smart meter tariffs turn out to be more expensive per year than conventional energy tariffs.
Nearly one million smart meters have been installed in homes, but only 37,900 customers have activated them and subscribed to the hourly or smart tariffs they were designed to facilitate.
Some smart meter unit rates are much higher than standard day/night meter rates.
The Utilities Regulatory Commission (CRU), the energy regulator, said it was working with ESB Networks to find out why some tariffs are so expensive.
It comes as households were hit with an eighth price hike in the latest round of hikes, when Flogas Energy announced its third price hike this year.
Electricity bills have increased by 17% and gas bills by 23% since October 26.
This is Flogas Energy’s seventh price increase since the beginning of last year.
There is no permanent charge increase this time. Flogas has some of the highest ongoing charges up to €600 per year for electricity.
The latest price hike will add around €340 a year to electricity bills and around €395 to gas bills, said Daragh Cassidy of price comparison site Bonkers.ie.
A total of two million electricity users are expected to be hit by huge energy price hikes from next month.
Meanwhile, the CRU has confirmed that it is probing tariffs for electricity customers who use smart meters.
The CRU admitted: “In some cases, customers who have a meter and a day/night tariff do not compare favorably to the smart meter tariffs that some providers currently offer.
He said it depends on how individual vendors rate their products.
“Work is underway with ESB Networks and the providers to understand the reason for some of the higher rates or if there are other barriers that may influence the scope of the rates that the providers are currently offering.”
The CRU has urged customers to compare available fares as other providers may offer better value.
“As the market continues to evolve and there is a greater amount of data coming from smart meters, we expect to see an increase in smart tariff offers to customers who are better suited to their usage.”
Mr Cassidy said many of the smart fares currently on offer in Ireland do not appear to offer much value.
“Depending on the type of meter you currently have (day/night meter or standard meter, for example) and where you use your electricity, you could end up paying more for your electricity on a smart tariff if you’re not careful. C It’s the last thing you want when prices are at record highs.
He said smart tariffs “are great at penalizing those who use their energy at peak times between 5 and 7 p.m. They’re not very good at delivering value outside of those times.”
A smart meter continuously records electricity consumption in the home or premises where it is installed and automatically transmits updated information every 30 minutes to a central database owned by ESB Networks.
A smart tariff means higher prices at peak times when the demand on the electricity system is high and cheaper electricity outside of peak times.
Meanwhile, those without smart meters have been asked by Bonkers.ie to submit a meter reading this week.
This is due to the fact that around two million electricity customers and half a million gas customers are expected to suffer huge price hikes next month.
Those who don’t submit a meter reading could end up paying for units used before the October price hike at the new higher rate.
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