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UTILITY Week 4th March 2016

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Customers This week Fresh doubts over smart meter rollout SSE calls for a drop in the smart meter coverage target; EDF complains of 'limited visibility' Fresh doubts have emerged over the energy industry's ability to execute a successful smart meter rollout, as SSE called for a drop in the coverage target and EDF said a lack of information provided by gas distribution networks (GDNs) could threaten the success of the rollout. SSE last week called for a drop in the target for smart meter coverage to 80 per cent by 2020. Responding to a straw poll by Utility Week asking whether energy suppliers would support a lower target, the company said: "SSE believes we must reassess the deadline and consider reverting to the EU-mandated target of 80 per cent by 2020 in order to protect the net benefits for customers." Currently, the UK is committed to a target of 97 per cent coverage by 2020. However, many in the industry believe this target will be difficult to achieve following a series of delays to the start of the official rollout. Meanwhile, in a submission to a recent Ofgem con- sultation, EDF said there is "very limited visibility and transparency on how GDNs are spending their allow- ance preparing for smart metering rollout". The supplier said although it receives "some updates" from the distribution network operators for electricity, it does not receive any information on the current perfor- mance and planning arrangements of GDNs. EDF added that the issue warranted "further exami- nation" in a mid-point review (MPR) during the current eight-year price control period. SJ/LD WATER Call for overhaul of developer standards Members' group Fair Water Connections (FWC) has urged water firms to overhaul how they measure standards for developer services to reflect what is impor- tant to self-lay organisations (SLOs) and the developers they seek to supply. At the start of 2015, water companies introduced voluntary standards covering their devel- oper services activities and, aer nine months of reporting, have said their headline performance compliance is now at 96 per cent. However, FWC claimed there is a disconnect between the experience of its members and what is being reported by Water UK on behalf of water firms. FWC managing co-ordinator Martyn Speight claimed the head- line improvement comes from the performance of high-volume, largely administrative tasks. "We are calling for companies, in their reporting, to weight main-laying work and give it greater promi- nence over administrative tasks and routine service-laying." ENERGY SSE to give £12m of help to vulnerable SSE will provide £12 million of support to its most vulnerable customers to help with their energy bills. Customers who are eligible can receive credits to their account automatically. Stephen Forbes, SSE director of domestic retail, said: "We are provid- ing debt assistance to tens of thousands of customers this year alone." The £12 million fund is redirected money that was le behind for up to seven years by former customers who moved, cancelled direct debits and failed to provide forwarding addresses. Former customers will be able to claim back credit if they come forward at any point. See analsis on vulnerable customers, p27 ENERGY Ofgem asked to cut back-billing period Citizens Advice has called for Ofgem to "radically reduce" the length of time suppliers can back-bill customers or scrap the practice entirely, aer research revealed as many as 2.1 million households could have been hit by large late bills. The research found that the average customer back-bill was around £206, with 15 per cent of those who had been back-billed claiming they were charged more than £250, aer energy firms undercharged them last year. Suppliers can currently back-bill a customer for up to 12 months of gas and electricity, regardless of who is at fault for the undercharging. High tech: current coverage target is 97 per cent I am the customer Allen Creedy "There needs to be scrutiny of non-domestic tariffs" In response to continued low global gas prices, many energy suppliers have announced fur- ther cuts to their domestic tariffs of around 5 per cent. It's always good to see cost reductions being passed on to consumers and shows the energy market is responding to public scrutiny. Debate continues about whether these savings have been large or quick enough, but what is certain is that they don't apply to small businesses on bespoke, fixed-term contracts. and media pressure. There needs to be the same level of scrutiny around non-domestic tariffs. The continued lack of transparency or comparability around bespoke, fixed-term business tariffs reduces trust in the market and hurts competition. One way to ensure micro businesses can get the best deals and make the right decisions is to bring transparency by making comparable domestic- style tariffs available to them. Allen Creedy, chair of energy and environment, FSB As the name suggests, these deals are fixed until the contract comes to an end. There are pros and cons to this. Businesses don't get the passed-on savings when wholesale energy prices fall. However, suppliers argue they also don't get bill increases when wholesale prices rise. At least, not until it comes to renegotiating their individual contracts – a process that takes place out of the public eye. The cost of energy is a major concern for domestic and small business customers alike. But for domestic customers there is at least a feeling that, in reducing tariffs, energy firms have finally responded to public, political UTILITY WEEK | 4TH - 10TH MARCH 2016 | 25

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