Suppliers to be held to smart meter code of practice

A smart meter code of practice is being drawn up to hold suppliers to account.

The code of practice is being developed by the government and Ofgem with all suppliers expected to sign up to it.

It is one of a package of measures announced to improve consumer trust in the energy retail sector.

Details of the proposed make-up of the code of practice are currently thin.

However, the government’s Plan for Empowering and Protecting Energy Consumers states that it “will increase industry adoption of good practice, creating clear expectations and a proactive and consistently positive consumer experience of smart metering, including improved aftercare following installation”.

It adds: “For example, it will look to address and reduce time taken for suppliers to respond to and resolve consumer issues with their smart metering system”.

Earlier this week, Citizens Advice warned that there is an “accountability gap” between the company underpinning the smart meter network and energy suppliers.

Research by the consumer charity found 20% of households with a smart meter – 2.9 million – still had to regularly submit manual meter readings because their device was not functioning properly.

Meanwhile nearly a third (31%) experienced issues with their in-home display (IHD), and a quarter of people who asked Citizens Advice for help with smart meter issues had billing problems.

Suppliers also face the prospect of being publicly ranked by Ofgem based on performance metrics, yet to be fully determined.

The government’s Plan adds that it is working with Ofgem and intends to publish a “wide range of data later this year to help consumers to better hold suppliers to account and drive high quality customer service”.

It adds: “Whilst there are existing tools for comparing the quality of services provided by energy suppliers such as Citizens Advice’s customer star ratings and Which?’s annual energy supplier ratings, greater use of Ofgem’s data will enable consumers to make informed decisions based on more factors.

“Suppliers will be better held to account by consumers on key issues such as how well they deal with complaints, and how easily accessible support is for their customers.”

As well as holding suppliers to account, the government has also set out proposals to better police third party intermediaries (TPIs) such as price comparison websites, auto-switching services and energy brokers.

The Plan states that “some TPIs are not providing optimal services to consumers” adding that “while a majority operate in an ethical and responsible manner, not all do so”.

To address this, the government has announced that it will be consulting on regulatory options for TPIs later this year.

The Plan also includes pledges to:

• Launch a price comparison consultation later this year
• Develop a new winter debt commitment with suppliers
• Explore potential reforms to standing charges
• Introduce a “consumer bill test” when making policy decisions

The Plan was published alongside the announcement that the price cap will fall by 7% from 1 July to 30 September 2024, compared to the previous quarter.

It means that for an average household paying by direct debit for dual fuel this equates to £1,568, a drop of £122 over the course of a year.

The average household paying by prepayment meter for dual fuel will pay £1,522 over the course of a year, while the average household paying for dual fuel by standard credit will pay £1,668 over the course of a year.

The government’s desire to mend trust in the energy sector was revealed earlier in the week when a leaked briefing note suggested that government officials fear supplier endorsement of energy proposals will turn the public against the measures.

The leaked briefing note from a government official states that they “do not necessarily want [the] advocacy” of the big six energy retailers as “consumer trust is so low in suppliers that if a package of this kind is backed by them then consumers will instinctively regard it as not in their interests”.

Utility Week understands that the briefing note was drawn up by an official within the Department for Energy Security and Net Zero (DESNZ) and relates to the announcements unveiled in the Plan for Empowering and Protecting Energy Consumers.

An email sent from Energy UK deputy chief executive Dhara Vyas to the trade association’s board and Domestic Retail Leadership Forum – and seen by Utility Week – raises concerns about DESNZ’s view of retailers.

Vyas says that the briefing note “confirms a concerning sentiment within the department (DESNZ) about the complex relationship between suppliers and customers”.