Ofgem is investigating Scottish Power over Smart Meter Obligations

What are smart meter obligations?

Under the rules, energy suppliers must take all reasonable steps to roll smart meters to all of their domestic and small business customers by the 30^th of June 2021.

Also read: Half of energy suppliers have failed to hit their smart meter installation targets

What has Scottish Power done wrong?

Ofgem is investigating the energy suppliers smart meter efforts throughout 2019 suggesting that it may have failed to meet its obligations. Since the investigation was announced, however Ofgem has stressed that by opening the investigation ‘it does not imply we have made any findings about non-compliance’.

Scottish Power has five million customers and was recently handed the 130,000 customers of the now defunct Tonik Energy.

“We are disappointed Ofgem has chosen to take this course of action, but we will cooperate fully with the investigation,” said a Scottish Power spokesman.

Also read: How to sell the benefits of smart meters to customers

Rollout concerns

The smart meter rollout has undeniably been a bit of a disaster from the beginning. The scheme is massively over budget, costs have gone up and the debacle of SMETS1 meters forced the regulator to push the deadline back yet again.

Many consumers still do not trust the technology thanks media scare stories and it’s likely that the 2021 deadline will not be hit thanks to the Covid-19 pandemic putting a rather big spanner in the works.

Social distancing and self-isolation rules have meant that far fewer meters can be installed during the full lockdown periods.

Despite the challenges of the pandemic, energy suppliers have still managed to install a million smart meters in 2020.

Many in the industry have raised concerns over the pace of the smart meter rollout with some forecasts predicting that it will fail to achieve its target. One report predicts that just 68% of consumers will have a smart meter by 2024, well after next June’s official target.

Ofgem has tried to raise the importance of the issue to energy suppliers by taking enforcement action against those who fail to meet their obligations. The most high-profile example being its £350,000 fine imposed on EDF back in 2018.

Also read: Number of Smart Meters installed in 2020 surpasses 1 million mark

SMET 1 issues

Energy suppliers are still dealing with the problems created by the installation of first-generation smart meters.

These SMET 1 meters often lose their ‘smart’ functions such as being able to automatically submit meter readings if the customer choses to switch energy suppliers. As a consequence, there are many dud meters out there that need to be replaced with the SMET 2 models.

This has added further strain to energy suppliers and has forced the government to extend the deadline for all SMET 1 meters to be fixed from the end of 2020 to the end of 2021.

Also read: Number of installed SMETS2 smart meters hits five million mark (only another 22 million to go)

Technology

The smart meter rollout also requires energy suppliers to adopt new technologies to ensure that the meters they install work properly. This is where a DCC Adapter comes in.

A DCC Adapter allows an energy supplier to connect and communicate with the Data Communications Company (DCC). Dyball’s adapter is designed with the energy supplier in mind and allows energy suppliers to increase the rollout of smart meters.
 
Dyball’s DCC Adapter has been designed to integrate seamlessly with our CSM as well as any other energy supplier’s CRM system. It allows you to smartly manage your customers by: 

• Offering full smart pre-payment functionality, including mode switch, debt collection and payment integration
• Providing Meter Operator (MOP/MAM) integration to simplify meter installations.
• Supporting remote meter fault diagnosis and resolution
• Supporting straight forward Device and Alert Management to facilitate easy management of your Smart meter estate, ensuring SEC compliance.
• Providing Firmware Management
• Alert management
• Smets 1 Enrolment
• Clock Drift identification and resolution
• Alerting of Communications issues

Further Reading

Covid-19 caused the biggest reduction in Greenhouse gas emissions since World War Two say new reports

What will Lockdown 2.0 mean for UK Energy Suppliers?

Three energy suppliers receive Final Orders from Ofgem for unpaid Renewable Obligations Payments

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.