Smart Meters Bill (First sitting)

Matt Western Excerpts

Committee Debate: 1st Sitting: House of Commons
Tuesday 21st November 2017 Public Bill Committees

[Douglas Ross]

Q The 99.75% is a great ambition, but is it still the case that the more remote and rural areas will be at the end of the programme, when the suppliers must get to the 99.75%, because—I am told—it is more difficult to install the meters there than in those areas that will experience the benefits earlier on?

Rob Salter-Church: That might be a question for Angus, in terms of the roll-out and build-out of the network, and where and when it will be reaching different communities in the country.

Angus Flett: We use two technologies, north and south. In the south it is a cellular technology, and that is an established network. In the north it is a radio technology, which gives a higher percentage coverage, particularly for the geographical aspects of Scotland and some aspects of rural areas. You are correct in that the high percentage coverage does not get rolled out until the last part of the programme. However, we have been working with our customers to see if we could speed that up for particular geographic areas. We are also working with Alt HAN, an alternative organisation set up by the Government, to look at that last 1% or 2% and the technologies we could deploy to resolve that. One of the technologies we use is called meshing, which effectively picks up the signal from one house where it is strong and allows that to repeat. So we are reasonably comfortable and confident that we can deliver the coverage footage.

[Matt Western (Warwick and Leamington) (Lab)]

Q I have some quick questions. I am concerned about what I heard in the previous session about the transparency to consumers. I sense that there is no consistency—perhaps you can correct me—between the different suppliers, in terms of information provided to the consumer about the programme, what the customer’s responsibilities are and what the provider’s responsibilities are, such as frequently asked questions and that sort of thing. Can you confirm the situation?

Rob Salter-Church: Suppliers have clear obligations in terms of what they have to explain to their customers. It really, really matters to us that customers get clear information about smart metering—indeed about everything—from their suppliers. It is important that they treat their customers fairly.

In relation to smart metering, suppliers work with the Smart Energy GB organisation to produce common materials and FAQs to make sure that there is clear information for consumers. That information is produced and the suppliers are working to pass that out to individual consumers. There would be potential unintended consequences if either Ofgem or the Government decided that we knew exactly how to speak to customers individually—every single one—and set out very prescriptive rules that suppliers had to follow to the letter. We place clear obligations on suppliers on what they explain to customers. They have clear licence obligations to ensure that they always treat their customers fairly. Suppliers have a programme of work going on, working through Smart Energy GB on common FAQs and information that can be shared with consumers, and they have to do that in a clear way that really engages customers and makes them understand the benefits of smart metering.

[Matt Western]

Q Have you withdrawn the licence from anyone so far on the basis of malpractice?

Rob Salter-Church: We have a range of tools if we see problems with licence compliance, including ultimately running an enforcement action and imposing fines. We have not had to use our enforcement powers in relation to smart metering as yet.

[Laura Smith (Crewe and Nantwich) (Lab)]

Q Matt just asked my question, but I will add to it. I could possibly be the only person in this room who has had to survive on a pay-as-you-go meter, and I have also lived through then being targeted with high tariffs by energy companies—they come to the estate and sell those things, knowing that they are going to make money out of the poorest in society. I struggle with the transparency of this. Data protection and customers’ privacy, in terms of information about how they are using their energy, is a real concern for me. I just do not personally buy the argument that it is all for the consumer, when there is money to be made out of people. So that is an issue.

The roll-out is also an issue. We have touched on the fact that it is obviously delayed. Is it going to happen or is it another initiative that is going to cost an awful lot of money? Who is going to end up paying for that? Will it ultimately be the consumer once again? Those are my two main points, before I get on my high horse.

Rob Salter-Church: You talked about having a traditional prepayment meter and some of the poor quality of service that results from that. One of the most important things that the smart meter roll-out will do is end the prepayment disadvantage, in terms of both cost and quality of service. That is absolutely key and there are real benefits for consumers.

You talked a little bit about privacy. There are very clear rules in place for suppliers; they must obtain customers’ consent if they want to have any data from them.