Consumers need protection as smart meters roll out

As smart energy meters are rolled out to every household in Britain, consumers should be ensured that they’re still able to easily switch utilities and have their rights protected, says energy regulator Ofgem.

The agency says it is updating its existing rules to increase consumer protection, especially for the most vulnerable. It expects to have those new rules in place sometime this fall.

The UK government has mandated that all homes and small businesses be equipped with smart energy meters starting in 2014, and some utilities are already deploying the advanced monitoring systems.

Ofgem wants to make sure customers with smart meters don’t face any barriers to switching energy companies because of any issues with the compatibility of meters with different suppliers. It also wants to ensure its rules protect customers if their billing methods are changed.

Smart meters allow utilities to remotely switch customers from credit to prepayment and to disconnect customers remotely. Ofgem wants to make sure suppliers will be able to switch meter to prepayment mode only where it is safe and reasonably practicable for the customer to use a prepayment meter. It also wants to ensure that suppliers will make thorough checks on vulnerability upon considering whether to switch customers to prepayment mode or disconnect them for non-payment.

The regulator is also reminding utilities rolling out smart meters that they must provide customers with all relevant information about the data those meters will collect, as well as any rights customers have to opt out of that data collection.

In light of past concerns raised by some business groups, Ofgem is also considering the need for additional protections for business consumers, in particular small businesses. It expects to decide on what actions it might take by later this year.