Source · Select Committees · Business and Trade Committee
Recommendation 30
30
Acknowledged
Paragraph: 130
The design of the energy price cap has contributed to recent instability in the supplier...
Conclusion
The design of the energy price cap has contributed to recent instability in the supplier market. Ofgem failed to properly stress test its design against a range of scenarios or consider how it interacted with its other regulations. The methodology forced suppliers to subsidise customers, which was clearly not the intended purpose of the price cap.
Government Response Summary
Ofgem agrees with the Committee’s assessment of the benefits of Smart prepayment meters and is committed to ensuring that customers receive all the benefits of fully working and interoperable smart meters, but enforcement activity is currently focused on other areas of work due to resource constraints.
Paragraph Reference:
130
Government Response
Acknowledged
HM Government
Acknowledged
Ofgem agrees with the Committee’s assessment of the benefits of Smart prepayment meters. Ofgem is committed to ensuring that customers receive all the benefits of fully working and interoperable smart meters, however enforcement activity is currently focused on other areas of work due to resource constraints. Larger suppliers have recently informed Ofgem that installations of traditional (non- smart) meter equipment is decreasing. Where a traditional meter is used for an installation or meter replacement, this is because the customer has specifically requested not to have a smart meter, or where a smart meter cannot be fitted due to space or technological constraints. Ofgem expects that new non-smart meter installations will further decline in the future as customers become more aware of the benefits of smart meters and stocks of traditional equipment falls.