Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to protect consumers from increased energy charges due to faulty smart meters.
Answered by Claire Perry
Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.
Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.
Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.
Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.
Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government plans to take to help ensure consumers are compensated for increased energy charges caused by faulty smart meters or their readings.
Answered by Claire Perry
Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.
Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.
Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.
Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.
Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what measures are in place to ensure that energy companies comprehensively investigate reasons for variations in meter readings when analogue meters are replaced by smart meters.
Answered by Claire Perry
Getting a smart meter is the best way to avoid inaccurate bills and increased energy costs. Smart meters are bringing an end to estimated billing and are expected to take an estimated £300m off energy bills in 2020 alone.
Smart meters must comply with relevant legislation on measurement, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations 2006 and the Measuring Instruments (Gas Meters) Regulations 2006. The accuracy of all meters is also monitored through the in-service testing (IST) scheme, and energy suppliers have strong commercial incentives to ensure that smart meters installed are accurate and function correctly given the costs of replacement.
Ofgem require suppliers to treat customers fairly, including setting out in contracts compensation and refund arrangements which apply if contracted quality service levels are not met, including inaccurate and delayed billing. These requirements apply with smart meters as they do with traditional meters.
Instances of back-billing sometimes occur after installations of smart meters due to an absence of meter readings from a legacy meter, and are often mistakenly attributed to a smart meter being faulty. BEIS has worked with energy suppliers to identify and share good practice to mitigate the risk and impact of consumers receiving back-bills when they have a smart meter fitted, and energy suppliers cannot back-bill their domestic customers for more than 12 months where the consumer is not at fault.
Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate the Government has made of the number of hydraulic fracturing wells required in the UK to replace gas imports for the period 2021 to 2035.
Answered by Claire Perry
In October 2017, the Government published a report summarising gas security, including consideration of the role of shale gas, over the next 20 years:
https://www.gov.uk/government/publications/gas-security-of-supply-strategic-assessment-and-review.
UK security of supply is provided by having access to a diverse range of sources, of which shale gas could be one. However, it is not yet known how much of the UK shale gas resource will ultimately be recoverable, or what rates of extraction, deliverability or reliability could be assumed if shale sources are found to be viable.
As such, while shale gas has the potential to support gas security of supply in the UK at a time when UK Continental Shelf supply sources are in decline, and to reduce reliance on imported gas, we do not have a figure on the number of wells needed to have an effect on security of supply.
Government security of supply assessments have conservatively assumed no shale contributions during the next 20 years.
Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment the Government has made of the reliability and accuracy of smart meter energy readings.
Answered by Claire Perry
Smart meters installed in Great Britain must comply with the relevant legislation on measurement at the time of installation, which are the Measuring Instruments (Active Electrical Energy Meters) Regulations and the Measuring Instruments (Gas Meters) Regulations.
The Office for Product Safety & Standards (OPS&S) regularly monitors the accuracy of meter populations through the in-service testing (IST) scheme to ensure they continue to perform to an acceptable level. IST therefore forms an important part of consumer protection by ensuring only meters that operate within the prescribed limits of accuracy are used for consumer billing. Further information is available online: https://www.gov.uk/guidance/in-service-testing-for-gas-and-electricity-meters
Asked by: Lee Rowley (Conservative - North East Derbyshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps the Government is taking to encourage energy companies to improve the accessibility and clarity of energy bills and statements to help customers better understand their charges.
Answered by Claire Perry
Ofgem, as the energy regulator, are responsible for deciding what information suppliers have to provide on energy bills. Too much detailed information on energy bills is not always an effective way to engage with consumers who can find this too complex or confusing. Ofgem are therefore introducing a principles based approach which allows bills to be simplified, with information made available elsewhere in a way which works for consumers. This approach recognises the different preferences consumers have for how they receive information, and balances protection for consumers with greater room for flexibility and innovation in the future. Ofgem are also conducting trials, the first of which concluded in autumn last year, to uncover what works in engaging consumers, without irritating them. These trails will be scaled up and rolled out nationally if successful.