Elgin Councillor expresses concern to big five energy companies at delays on installation of smart meters for households worried about cost-of-living crisis
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DELAYS in the installation of smart meters has prompted an Elgin Councillor to write to the 'big five' energy companies.
SNP Councillor for Elgin City North Jérémie Fernandes has expressed concern to the CEOs of EDF, ScottishPower, E.ON, British Gas and Ovo.
This follows enquiries from constituents unable to book engineer appointments, with some receiving letters threatening they will be moved to a higher tariff if they do not get a smart meter installed.
Cllr Fernandes said: "With the energy price cap increases in October and throughout the next year, it is important that consumers in Moray can track their energy usage, are able to access lower cost tariffs, and that they are charged for the energy they actually use rather than based on estimations.
"Energy companies encourage people to get smart meters installed, but they are not able to meet demand and carry out the work."
He said some constituents have been waiting for more than six months and they get regular reminders that if they do not get a smart meter, they will be moved to a higher tariff. Yet, when they try to comply and book an appointment, they are told that there is none available in the region.
Cllr Fernandes said this causes unnecessary worries for constituents at a time when they are under financial pressure.
"I hope a solution is found sooner rather than later," he added.
On Friday, Ofgem, the UK energy regulator, announced that the price cap for average household dual fuel bills will rise to £3,549 from the current £2,000.
This comes as Ofgem’s CEO warns of the hardship energy prices will cause this winter and urges the incoming Prime Minister and new cabinet to provide an additional and urgent response to continued surging energy prices.
The increase reflects the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic and have been driven still higher to record levels by Russia slowly switching off gas supplies to Europe.
The price cap, as set out in law, puts a maximum per unit price on energy that reflects what it costs to buy energy on the wholesale market and supply it to our homes. It also sets a strict and modest profit rate that suppliers can make from domestic energy sales. However, unlike energy producers and extractors, most domestic suppliers are currently not making a profit.
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make.
“The price of energy has reached record levels driven by an aggressive economic act by the Russian state. They have slowly and deliberately turned off the gas supplies to Europe causing harm to our households, businesses and wider economy. Ofgem has no choice but to reflect these cost increases in the price cap.
“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year. We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action. The response will need to match the scale of the crisis we have before us. With the right support in place and with regulator, government, industry and consumers working together, we can find a way through this.”
Ofgem has also today strengthened the rules around direct debits to ensure suppliers set them at the right level, meaning that customers only pay exactly what they need to. The changes will stop suppliers from building up excessive customer credit balances and using them in a risky way as working capital.
The new price cap level will take effect from October 1.
Anyone worried about paying their bill should contact their supplier in the first instance. They are obliged to discuss payment plans and direct customers to government and third sector support where available. Ofgem is tightly monitoring suppliers’ performance in this area and has told all suppliers now is the time to step up their support for customers, especially those on low incomes or in a vulnerable situation.
