Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential implications for his policies of practice of classifying communal electricity meters in residential buildings as business rather than domestic; what steps he has taken to ensure fair and consistent application of tariffs; whether energy suppliers are permitted to override a meter’s designation as Domestic in the National Database when setting tariffs; and what steps his Department is taking to prevent incorrect classification.

Communal areas in apartment blocks are charged on a non-domestic energy contract as the organisation who is responsible for them is a business. As such, domestic consumers living in the apartment block are usually charged a non-domestic energy rate for these areas. Ofgem’s Maximum Resale Direction protects tenants from being charged inflated electricity costs from their landlord. It sets a maximum price that can be charged for electricity and gas which has already been bought from a licenced supplier.

Suppliers are ultimately responsible for correctly classifying the customers they contract with as domestic or non-domestic, in line with Ofgem criteria. Suppliers are also responsible for the correct classification of electricity meters, in accordance with ‘meter profile classes’ managed by Elexon in the Balancing and Settlement Code (BSC).

Ofgem has made clear in guidance on this subject that ‘meter profile class’ should not be the deciding factor in whether a customer is domestic or non-domestic, this should be based on the intended purpose of consumption at the premises (i.e. domestic or non-domestic) Bespoke contracts should be offered where needed