Smart meters will raise power bills at peak times
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