Source · Select Committees · Business and Trade Committee
Recommendation 50
50
Accepted
Paragraph: 201
We are concerned by reports that self-disconnection is already at a record high, and this...
Conclusion
We are concerned by reports that self-disconnection is already at a record high, and this is before the expected, unprecedented rise to the energy price cap this winter. Ofgem only collects partial data on self-disconnection and does not have a sufficient understanding of the risks facing prepayment customers come October.
Government Response Summary
Ofgem introduced a quarterly request for information to gather data from larger domestic suppliers on self-disconnection and Ofgem's view is that it would be preferable to have longer-term data available before making it publicly available.
Paragraph Reference:
201
Government Response
Accepted
HM Government
Accepted
In Q4 2021 Ofgem introduced a quarterly request for information to gather data from larger domestic suppliers on various datapoints in relation to pre-payment meter customers, including self-disconnection. Due to the challenges around identifying self- disconnection, Ofgem is currently only able to obtain data in relation to smart-PPM customers, comprising around 1.9m smart-PPM electricity customers and 1.4m smart- PPM gas customers. Analysis of data is produced quarterly and considered within Ofgem, including on market trends with regards self-disconnection. Ofgem’s view is that it would be preferable to have longer-term data available (at least one-years) prior to making it publicly available. Ofgem anticipates there will be significant seasonal impacts on the levels of self-disconnection observed, and as such it would be advantageous to have considered this, prior to making data public. Therefore, it may be early 2023 before the data is made available. The Ability to Pay rules are covered by Standard Licence Condition 27.5. It is clear that suppliers must assess a consumer’s ability to pay their energy bills. They should agree an affordable payment plan to help consumers stay on supply. Suppliers should only install a prepayment meter if it is safe and practicable to do so. This is covered by SLC 28.1B. Ofgem published guidance on this in 2016, which stated that suppliers should assess whether it is safe and practicable to install a prepayment meter for reasons including “whether the customer requires a continuous supply for health reasons, such as dependency on medical equipment requiring an electricity supply.”