The Daily Telegraph

Smart meters will raise power bills at peak times

- By Katie Morley consumer affairs editor

SMART meters will be used to increase energy prices at peak times, the head of one of Britain’s “Big Six” providers has admitted for the first time.

The introducti­on of surge energy pricing has been predicted by a number of energy experts, but the admission by Scottish Power is the first time a Big Six energy provider has revealed such concrete plans. Scottish Power told The Daily Telegraph it would introduce new smart meter tariffs, as soon as they are approved as early as next year, which would see the price of energy fluctuatin­g every half an hour.

Keith Anderson, the firm’s chief executive, said the installati­on of smart meters should become the responsibi­lity of networks instead of suppliers to make the roll-out more cost-efficient for consumers.

Surge-price tariffs rely on smart meters and will change the way households consume energy, leading to them paying more for usage during popular times. The hope is that a wave of smart appliances that can “talk” to smart meters will cut bills in the long run.

Surge pricing is technicall­y allowed, but customers have to opt in to share their usage data. Ofgem is consulting on whether to allow data to be collected as standard.

Mr Anderson said his firm “would aim to introduce tariffs that offer savings to our customers based on real-time informatio­n”.

SIR – I received a notificati­on from my electricit­y supplier of the date they were coming to install a smart meter. They wanted confirmati­on that I would be at home.

There was no indication that this was voluntary. It gave the impression that it was an automatic upgrade.

Thanks to The Daily Telegraph for warning me against going ahead. David Wilson

Cottingham, East Yorkshire

SIR – As my dual-fuel contract was ending, I rang United Utilities to ask what tariffs were available. I wanted the cheapest, of course.

I was told the cheapest tariffs were available only to those who agreed to a smart meter. I said I didn’t want one, as there were problems with them, especially with changing supplier.

Is it legal to discrimina­te between customers like this? Anne Worrall

Charleswor­th, Derbyshire

SIR – In 2015 my supplier provided me with an energy monitor. I have solar panels and found that, when I was exporting electricit­y, the monitor identified this as consumptio­n, making nonsense of any readings and records.

When I challenged the company, it admitted the monitor was no use, and that any smart meter would also fail to distinguis­h import from export.

I took this up with the Energy Saving Trust, which confirmed that current meters would not allow for photovolta­ic export.

In discussing tariffs, my current supplier tried to interest me in the smart tariff, requiring a smart meter, but confirmed that the meter was not compatible with photovolta­ic export. Anyway I was “out of range”, but I could still have the tariff as “it was not my fault” I could not have the meter.

It seems likely that smart meters still being installed are not compatible with photovolta­ic systems, and I urge the thousands of solar-panel users with smart meters to check that, on sunny days, when they are exporting to the grid, the meter is not identifyin­g this as consumptio­n. Michael Faraday

Usk, Monmouthsh­ire

SIR – The so-called Big Six energy suppliers did not all lobby for smart meters to be rolled out by supply companies (report, July 28). Scottishpo­wer argued that power distributi­on network companies would have been best placed to install smart meters efficientl­y.

Network companies could go street by street rather than by the supply companies’ patchwork approach.

We argued for this based on our experience of smart-meter installati­on in other countries, including Spain and the United States. We also highlighte­d to the Government that the United Kingdom would probably be the only country in the world to use supply companies for this.

Customers do see some immediate benefits from a smart meter, including opportunit­ies to reduce consumptio­n and automatic accurate billing.

However, the longer-term benefits will be when tariffs reflect 30-minute meter readings and when network companies can track demand better, for example as more people charge electric vehicles at home.

We have made these arguments to successive energy ministers. We still believe that a switch to a networks-led roll-out should remain an option for the Government at this stage. Keith Anderson

Chief Executive, Scottishpo­wer Glasgow

SIR – The British Infrastruc­ture Group of parliament­arians made an excellent analysis of the administra­tion of the roll-out of smart meters.

It did not, however, consider that the first tranche of meters (Smets1), able only to indicate power usage and cost, did nothing to reduce costs, the consumer being left to make a series of judgments on use of electricit­y.

The new kind of meter (Smets2) cannot cut costs itself, but can by “time-of-use tariffs” seriously increase bills. Richard Phillips

Newbury, Berkshire

SIR – If the installati­on cost of a smart meter is £500 and it saves £11 a year, it would be more cost effective for the Government to give every household a good cordless vacuum.

This would effect two or three times the savings and give an enormous boost to particular British industries, provided of course that the Government supplied the right machines. Dr Roger Trueman

Mold, Denbighshi­re

 ??  ?? A Futurist landscape with chimneys and electricit­y pylons by Umberto Boccioni (1912)
A Futurist landscape with chimneys and electricit­y pylons by Umberto Boccioni (1912)

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