End of Radio Teleswitch Service: Rural Areas

Dave Doogan Excerpts

Wednesday 4th December 2024 Commons Chamber

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

I am pleased to raise the issue of the radio teleswitch service decommissioning in the House this evening. This is a pressured and important matter for 4,665 households in my constituency, a further 80,000 households across the north of Scotland and fully 800,000 households across Great Britain. The ending of the radio teleswitch service, or RTS, which controls “total heating with total control” meters, is of vital importance to electric-only customers and yet remains a troubled landscape to some extent.

RTS is a radio signal that tells “total heating with total control” meters when to switch between peak and off-peak rates, and this obsolete system will come to an end on 30 June 2025. It was originally going to cease on 31 March 2024, but that had to be pushed back because the system was not ready. That should have been when alarm bells started to ring.

Customers are being asked to switch to smart meters, and Energy UK, the trade body for energy suppliers, has advised customers what could happen if they do not:

“You may find that your heating and/or hot water is continually left on or off, or the charging-up happens at the wrong time of day. Your electricity supplier won’t be able to confirm how much electricity you have used during peak or off-peak times, which means your electricity costs could be much higher than before.”

However accurate that message might be, it could easily be a source of alarm for customers. Any of us who have had the misfortune to have electric-only heating will realise that even with the discounted rates, it is still ferociously expensive, so the idea that anyone could have it without the discounted rates is simply not realistic.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

Like my hon. Friend, I have significant concerns about the end of RTS in rural Scotland. Moray West, Nairn and Strathspey has a disproportionate number of RTS meters, and I include myself in that statistic. My own experience with OVO Energy and switching to a smart meter from RTS has left a lot to be desired. I have had several telephone conversations with OVO representatives as a private customer regarding the RTS switchover. The main question I had during those phone calls was, “If I switch, will I be better or worse off, or paying the same as I am now for electricity?” I had to push extremely hard to get a straight answer to that. If that is the difficulty I am experiencing, as someone who is experienced in assisting constituents with this very issue, does my hon. Friend share my concern about how more vulnerable people, who may feel immense pressure from operators installing new meters, will be impacted?

[Dave Doogan]

I thank my hon. Friend for his intervention. He has raised a couple of points. One is really important, and that is whether or not customers have an option. They actually do not have a realistic option. The radio teleswitch service is coming to an end at the end of June next year, and they will not want to be in the position where they do not have a smart meter that can toggle between a reduced-rate tariff and a full-price tariff. That would be ruinously expensive.

My hon. Friend also touched on the communication, and the quality thereof, that supply companies are having with their customers. One of the reasons that the uptake is so slow is that people do not have confidence in smart meters—and why would they? There were plenty of problems with the smart meter roll-out just for regular electricity customers who want to know how much electricity they are using. The stakes are far higher for electric-only customers who heat their homes with electricity. They need confidence that their smart meter will actually work. I will come on to that point in a second.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

My hon. Friend mentioned Energy UK, and my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter) mentioned the number of people in his constituency who use the service. I think it is in the region of 3,000 in Aberdeenshire North and Moray East. Those people need clarity about what is going to happen. Does my hon. Friend agree that households need clarity on these proposals, and that the Government should use all means available to them to ensure that the roll-out is fair and that reassurance is provided to customers?

[Dave Doogan]

The operative word of my hon. Friend’s intervention was “fair”, and I will come on to exactly who owns the risk.

[Jim Shannon (Strangford) (DUP)]

In my discussion beforehand with the hon. Gentleman, I mentioned what I would be referring to in this intervention. We have similar issues in Northern Ireland, so does the hon. Gentleman agree that the needs of rural areas need to be taken into consideration? The current cost of living crisis centres on an energy crisis, so we need to ensure that people are not paying more because they are unaware of the steps that need to be taken to deal with this change.

[Dave Doogan]

The hon. Gentleman is right that Northern Ireland is a different energy market from Great Britain, but there will be, without question, electric-only customers in the larger settlements of Northern Ireland. I know that Northern Ireland is a heavy user of heating oil, but the same scenario will exist in Northern Ireland. Although it is a different energy market, the same Department has to have oversight of the equity and effectiveness of whatever solution is found for that part of the United Kingdom.

Constituents have contacted me with concerns that they are being asked to switch to a smart meter without a guarantee that the smart meter will work properly. Some customers with poor reception who have switched to a smart meter are being asked by their supplier to submit manual readings. It is not clear whether manual readings are compatible with alternative economy tariffs, as these are based not only on how much energy is used, but on when that energy is used.

The Data Communications Company manages smart meter networks, which can reach 99.3% of properties, and more than half of homes in GB are already connected. Information is transmitted over a wide area network using mobile phone or radio signals sent from each property’s communications hub, but the method of transmission differs. In central and southern GB, smart meter data is transmitted using cellular and wireless mesh technology provided by Virgin Media O2, whereas in the north of England and all of Scotland it is transmitted over long-range radio signals provided by Arqiva.

It would be safe to say that there remains substantial concern about the ability to have two-way communication between supplier and customer over this system. This is no small part of the reason for the hesitancy common among “total heating with total control” customers to rush towards the need to switch.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The hon. Gentleman has touched on the fact that radio teleswitching is going. It is an analogue technology, and we will be fortunate if it lasts until next June—it could collapse at any second. It will be replaced by smart meters, and surely it is not beyond the wit of man to design a smart meter that provides something like “total heating with total control”. They do not at present, but that is just because they are not designed to do so. Is it not the case that this could be fixed if the regulator got the companies and the different players together and told them to produce something that suits the customers, not just themselves?

[Dave Doogan]

The right hon. Gentleman will have no small number of these customers in his constituency, and he touches on the important point of the vagueness around this. Customers are being told that they must do this, and when they ask for any detail about that which they must do, it is scant, vague and conflicting.

We only have to look at the forums on the energy company websites and on Facebook to see that peer-to-peer support is answering people’s questions on this issue, rather than there being a cohesive and comprehensive programme of information from the Government, the Department, the regulator and the energy companies, working in concert in a professional and coherent way to let customers know exactly what is going to happen.

On the speed of the roll-out, the energy suppliers, the UK Government and consumer groups have committed to co-operating to replace RTS meters prior to the shutdown, which is a pretty minimal commitment. The 10 energy companies that have pledged their participation are: British Gas, EDF, E.ON, Octopus, Ovo, Scottish Power, So Energy, SSE, Total Energies, Utilita and Utility Warehouse.

Through its call to action, the industry has committed to several measures, including zeroing in on regional hot spots with the highest number of RTS customers. That is good but it is late. The industry has a catch-up job in public relations and customer confidence, which it needs to accept and resource. The industry has committed to expediting meter upgrades for RTS customers, giving prioritisation to vulnerable customers for upgrades, co-operating to solve technical issues, and pooling knowledge and expertise across companies. This should not be a competitive commercial endeavour; it should be a call to action across energy companies.

Different houses are wired up in different ways to accommodate “total heating, total control.” They will interact differently with smart meters when they are fitted, which needs to be reconciled. The industry has committed to issuing monthly reports on meter replacement. I urge right hon. and hon. Members to focus on those monthly updates, because the problem we have is that if we continue to replace RTS meters at the current rate, that will take until 2028, when we only have until June 2025. That is why my constituents and I are so concerned.

To be fair, the industry is also concerned. It wants the transition to work because it wants its customers to be supplied and to be paid for that supply. The industry is not trying to make this not happen—quite the opposite—but we need to change gear and pace. Industry is confident that it has the capacity to deliver for every home, but not if all those homes come forward in April, May and June. That will not work, which is why we need a call to action now. We are into December and nothing will happen before the new year, so we need to ensure that we hit the ground running in January with this matter as a priority.

I made sure the Minister had advance sight of my questions, so she could respond at the end of the debate. Is she confident that all properties will have a smart meter installed by the deadline? What options are available to RTS customers with poor or no mobile signal, or no ability to receive the radio signal at their property? Will there be an option in extremis, when it is demonstrated that the signal cannot be received at the property, for the customer to have some type of timer solution, with or without a smart meter?

Will a standard tariff be ruled out as an option, given that it would be ruinously expensive for any customer? What action has been taken with industry to ensure that customers receive a tariff at the same rate or better than that which they had on their “total heating, total control” rate? That is a key concern for my constituents.

What steps will the Government take to ensure that the electrical system, and the statutory and commercial entities that control that electrical system, will carry the risk for inflated bills as a result of the changes? Consumers have no responsibility whatsoever for the functioning of the electricity system so, by any measure of justice, they should not be exposed to the financial risk of a system that no longer works and is being replaced by one that is more expensive. That should not happen.

--- Later in debate ---

[Miatta Fahnbulleh]

Yes, I am very keen to reconvene that. It is absolutely essential that we work with hon. Members across the House who represent constituencies that we know will be affected. From our perspective, we have a big job to engage consumers to ensure that they are aware and that the transition is working. We are keen to work across the House to do that.

One of the outcomes of the roundtable that was put in place was that the taskforce has been established—with Ofgem, industry and the Government—to manage the transition and to put and inject the urgency that we need to see in the ongoing process. In October, the industry signed up to a call to action, representing a collective agreement to take the steps needed to speed the transition away from RTS. Specific actions that were included in that call for action are: targeting of resources towards regional hotspots where we know there are a high number of RTS customers and we know that we need to do work to reach them; fast-tracking of meter upgrades for RTS customers and, in particular, vulnerable customers who we are very worried about; and collaboration on some of the technical solutions that we know are needed.

We are clear that the delivery of the transition away from RTS requires active engagement with consumers, as they will need to agree to appointments, collaborate with their installers and ensure that they have the right solutions in place.

[Dave Doogan]

Does the Minister agree that there needs to be a change of tone and language? It is all very well for the Government, the regulator or the companies to feel the urgency, but if customers do not sense that, we will not get the pace that is required. She talks about how it is a big job, and we can all agree on that. It is a big job that needs to be completed in very little time, so it is not just about the scale but about the pace. If we cannot get customers energised and exercised about the need to get that done, that pace will not happen.

[Miatta Fahnbulleh]

I completely agree with the hon. Member. We have said to suppliers that they must inform all affected customers by 31 December to make sure that we are injecting that sense of urgency, both within the supply chain and, critically, among customers. There is a collective job for us all to make sure that those who are affected are aware that this is happening. That is why this debate is so important. That is why I am keen to engage with Members from across the House to ensure that we are getting that message out to constituents.

Critically, the taskforce has been asked to establish working partnerships with local authorities, housing providers and other customer-facing organisations, so that we can get the word out that this is happening, that customers need to engage and that they must get in touch with their suppliers so we can provide the best possible options for them as we move forward.