Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted in Part
Energy suppliers lack obligation to replace faulty in-home smart meter displays after one year.
Conclusion
Consumers are only guaranteed to receive the benefits available from being able to monitor their energy usage via an in-home display for a year. After one year, if the device breaks the energy supplier currently has no obligation to replace it.65 Ofgem said it encourages suppliers very strongly to replace any in-home displays that are not currently working for whatever reason, although the Department accepts that after one year this would be at the discretion of the supplier and the consumer may be charged for a replacement.66
Government Response Summary
The government agrees with the committee's observation, stating it is developing and seeking agreement on voluntary good practice principles for In-Home Display provision beyond the initial 12-month period and has not ruled out further regulation, partially addressing the lack of obligation to replace them.
Government Response
Accepted in Part
HM Government
Accepted in Part
5.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2024 5.2 The department agrees that energy suppliers should have the right resources and analytical insights in place to both monitor and maintain the ‘health’ of their metering estate. To provide support to this activity, the department has developed and continues to revise good practice, and tracks energy supplier performance. The department's ongoing work to drive down the number of non-operating meters has shown that those suppliers that have the right resources in place can do this effectively and successfully, with non-operating meter numbers reducing for the last 12 months. 5.3 Through licence conditions, the government requires energy suppliers to take all reasonable steps to operate smart meters in smart mode. Ofgem is responsible for regulating energy suppliers against its licence conditions requirements and in its April 2023 Open Letter, Ofgem was clear that it expects energy suppliers to be proactive in identifying and remedying non-operational smart meters and to have systems and processes in place to facilitate this. 5.4 Energy suppliers are required to maintain In Home Displays (IHD) within the first twelve months following installation and fix or replace any device which is found to be faulty. Working with industry, the department has developed and is working to seek agreement to voluntary good practice principles towards IHD provision to ensure a more consistent and positive experience beyond this twelve-month period and has not ruled out further regulation if necessary.