Smart meters to allow peak charging
Energy companies have ‘hidden agenda’ to raise tariffs at popular times, warns ex-ofgem manager
SMART meters will soon allow energy firms to charge households more for gas and electricity at peak times, a former Ofgem manager has warned.
So-called “time of use” tariffs would lead to households paying more for watching television, charging gadgets and running the washing machine when energy companies choose.
It means they could raise their rates on Christmas Day or at Easter, when millions of households do the cooking around the same time.
Under an £11 billion government smart meter roll-out, every home is to be offered a smart meter within the next two years, with the message that they help consumers save money and use less energy.
Unlike ordinary meters, smart meters transmit information directly to the supplier, doing away with the need for manual meter readings to be taken.
But according to Jerry Fulton, the former head of gas and electric meter “meterology” at the energy regulator Ofgem, the devices will give suppliers the power to increase bills at will, just like paying extra for peak-time travel.
He told The Daily Telegraph: “I believe that the hidden agenda behind smart meters is that they will allow half-hourly charging. Instead of having two charge rates (day and night) the price of energy will change every half hour, so when solar and wind generation are low and usage is high the price of electricity will rise steeply.
“What would make more sense than smart meters is smart appliances that could automatically switch on or off depending on electricity-grid demand.
“For instance, fridges, freezers and some battery chargers could be switched off at peak demand periods, as could washing machines and dryers.
“It is claimed that smart meters are safe and secure. Not having one, because they are not needed, is even more safe and secure.”
Uswitch, the price comparison service and switching website, also believes that “time of use” energy deals will become commonplace once the government roll-out is complete.
Such deals will begin to dominate the energy market once so-called “second generation” smart meters have been installed in people’s homes, it said. Energy firms have said they would be open to introducing such tariffs as an option alongside normal tariffs.
But Mr Fulton warned this could make switching to cheaper deals “a complete nightmare” as fluctuating prices would be much more difficult to compare.
Last week The Telegraph revealed that Britain’s biggest energy firms were failing to tell customers with smart meters that they could cease to work properly if they switched to a cheaper deal with a different supplier.
Just over half of the one million households with a smart meter which change energy providers every year to save money discovered that the devices went “dumb”, data showed.