Utility Week

Customers UTILITY WEEK | 20TH - 26TH APRIL 2018 | 25 This week Daily Mail campaigns to relax smart targets Pressure on suppliers to meet installation targets is resulting in 'bullying', says newspaper The Daily Mail has launched a campaign calling on government to relax the 2020 deadline for the smart meter rollout. Suppliers face fines equal to 10 per cent of their worldwide sales if they fail to meet their tar- gets. In the worst case, penalties could amount to over £7 billion. The Stop The Smart Meter Bullying campaign by Money Mail, part of the Daily Mail group, claims this pressure has resulted in "bullying" tactics and says it has been "inundated" with letters, emails and calls from readers who feel pressured to accept the offer of a smart meter. It said most of its readers wanted to wait until second generation SMETS2 meters were available, rather than installing a SMETS1 meter now, which would have to be upgraded in the future. It also said there were privacy concerns about how energy suppliers plan to use consumer data, which it said had been heightened by the recent Facebook- Cambridge Analytica scandal. The campaign wants the government to relax its targets for the rollout. It said: "Ministers could either push back the 2020 deadline or reduce the number of homes in which they need to fit meters. For example, they could say suppliers must install them in only 80 per cent of homes and busi- nesses by this time." The campaign also calls on Ofgem to set out clear rules on what is and what is not an acceptable way to advertise the devices to customers. AC PAN-UTILITY Ombudsman schemes need to be 'more effective' Consumers' ability to access alternative dispute resolution mechanisms, such as the energy ombudsman's scheme, should be beefed up, according to the government's consumer green paper. Modernising Consumer Markets, which was published on 11 April, states that ombuds- man schemes could be "more effective". It says even where alterna- tives to court exist for resolving disputes, many consumers do not make use of them, citing Citizens Advice research. And it says consumers who do use alternative dispute reso- lution tend to be "older, more educated, and earn more than the average adult". ENERGY EDF to raise prices by 1.4 per cent EDF Energy has become the sec- ond big six supplier this month to raise its standard variable tariff. The rate will increase by 1.4 per cent for dual-fuel custom- ers from 7 June, representing an annual rise of £16 for direct debit customers. The change is due to an increase in the standing charge for electricity of 2.7 per cent. The company said this reflects the increase in some of the fixed costs associated with supplying electricity. EDF Energy will further increase the charges for custom- ers choosing to pay by cash or cheque by £6 per fuel per annum, to be "closer to the real cost of serving these customers". Last week, British Gas said it will raise its SVT by an average of 5.5 per cent from 29 May. It blamed the hike on rising whole- sale and policy costs. ENERGY Energy UK calls for urgent RHI review The government should review the Renewable Heat Incentive (RHI) scheme by the end of this year, according to a report by Energy UK. The industry umbrella body has called on the government to review its suite of low-carbon heat initiatives, including RHI and the Heat Network Innova- tion Project, which are due to close in the early 2020s. Energy UK says investors need clarity about the long-term framework for funding lower-car- bon heating solutions. It urges the government to widen the range of technologies it supports, expand the scope for private investment and encourage mass adoption of heating installations by targeting property developers and housing associations. Readers advised to wait for SMETS2 I am the customer Alex Neill "Our advice to customers paying too much? Switch" Consumers could be forgiven for thinking that nothing has changed in the energy industry when last week the biggest of the big six raised its prices and a rival quickly followed suit. British Gas, which has 4.4 million customers on its standard variable tariff (SVT), and EDF, with 1.5 million SVT customers, both announced price increases within the space of days. It will surprise no-one if and when the others follow suit. They have blamed the rise on could save up to £359 a year. Our advice to the industry? If it really wants to convince con- sumers it has their best interests at heart, then it needs to act now. The cap is only temporary, so all will need to ensure that when it is lied, this broken market is a thing of the past and all energy suppliers compete for customers by efficiently deliver- ing better service and fair prices. Alex Neill, Which? managing director of home products and services wholesale energy prices and bal- looning policy costs, including the smart meter rollout, which looks increasingly unlikely to deliver by the 2020 target. The energy minister called the increase "unjustified", while the regulator said it was "unwel- come". Both responses are likely to baffle many customers, who will wonder who is in charge here and may have thought they would be protected by the price cap, but this won't come into force until the end of the year. Our advice to customers who are already paying over the odds for their energy? Switch. Switch to a competitive fixed deal as soon as possible, because they

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