Policy & Research

Smart meters

How we represent consumers

Consumer Focus is committed to ensuring a successful rollout of smart metering. Over the last two years we have worked closely with DECC, Ofgem and a range of industry and not-for-profit organisations to help put consumers at the heart of the decision making process on smart meters. This has resulted in the following wins for consumers: 

• All customers will be offered a separate in-home display alongside their meter at no additional cost. We are now pushing for minimum standards to ensure the display is easy to use and good quality.
• Pressed for smart meters to have pre-pay functionality installed as standard – this should help deliver cheaper prepayment meter tariffs and better customer service. We continue to work to ensure that these benefits are realised.
• A commitment from Ofgem to introduce a mandatory Supplier Code of Practice for Installation. This is a set of rules which outlines what suppliers have to and can’t do when they visit your home and install your smart meter and display. Our next step is to ensure the Code is robust.
• Consumer privacy, health and security concerns are higher up the EU and GB Government’s agendas. A number of suppliers are also reviewing their practices following our investigation into data access and use. We continue to press for protections in this area.
• The introduction of protections to prevent suppliers from misusing the ability to remotely disconnect, switch payment method and limit the amount of energy to our homes. We are currently working on the precise wording of the licence conditions and guidance linked to this.
• A new licence condition so that where suppliers become aware that prepayment is no longer safe and easy for the customer to use that energy suppliers have to provide alternative payment arrangements – this is something we have long pushed for.
• A requirement on suppliers to provide information to customers on how to use a prepayment meter and topping-up. Our PPM research showed this was a problem which was likely to get worse in a smart world.
• Faster reconnection of energy supply for customers when disconnected and better quality energy supply. Thanks to the inclusion of last gasp functionality in smart meters, customers will be less likely to wake up or come home to a house without energy.
• Energy companies will also have to pay compensation to customers if wrongfully disconnected and reconnect them much faster. We are currently in negotiations as to appropriate compensation levels.  
• Suppliers will be obliged to continue to offer cash top-up for prepayment meter customers – even though top-up by phone, internet is technically possible with smart meters.  Good news for customer choice and access, especially for those without bank accounts or who like to budget using cash.

These are first steps but there is much more to be done to ensure that customers are protected from potential detriment and are able to benefit from smart metering.

Representation

Consumer Focus pressed for the creation of and sat on the Ofgem Consumer Advisory Group (CAG)

We also sit on the Disability Advisory Forum.

These groups enable a range of charities and consumer groups to have their voice heard.

We are currently the sole consumer representative on the following DECC/Ofgem working groups:

• The Ministerial Advisory Group with the Energy Minister Charles Hendry MP
• The Implementation Coordination Group
• The Privacy and Security Advisory Group
• Smart Metering Design Group and its associated working groups
  These groups provide recommendations to Government on key issues such as minimum standards for displays, how smart prepayment should work, smart tariffs and data access and use.  We would welcome greater consumer participation in this work.Consumer Focus has helped to support other consumer groups to engage with the smart meter debate, providing energy expertise where needed to non-energy and energy experts alike and has organised and pushed for workshops with consumer groups and cross-sector representatives to ensure that key issues are heard and properly debated.  These include workshops on: sales and marketing; Installation Code of Practice,  low income and vulnerable consumers, data access and use, remote disconnection and switching, consumer engagement
  http://www.ofgem.gov.uk/e-serve/sm/Stakeholder/events/Pages/events.aspx

At a European level, we are the lead voice on EU consumer smart metering issues, along with the Netherlands, Germany and France and have led BEUC, the European consumer group on this issue.

We had a place at the table at the European Smart Grids Task Group and the respective working groups which make policy recommendations to the European Commission. This resulted in formal proposals going to the Commission and European regulators association, ERGEG, around data protection, access and use and wider consumer protections.

In order to inform our policy positions we carry out research, monitor complaints and calls to front line advisors and carry out investigations into supplier practices using our statutory powers.