Some energy customers will soon see the benefits of a switch to a new system for energy bills that will lead to more accurate and transparent bills, cost savings through new ‘time-of-use’ tariffs, and better integration of renewable energy sources.
The Market-wide Half Hourly Settlement (MHHS) programme is designed to help modernise the UK’s energy sector by providing more detailed consumption data – taking readings from customers’ electricity meters every 30 minutes – instead of the current monthly frequency.
However, concerns have been raised about the impact on vulnerable households [letter to Ofgem pdf] and the discriminatory nature of only making the tariffs available on smart meters.
A spokesperson for the End Fuel Poverty Coalition, commented:
“We must ensure that electricity pricing is fair and that everyone can access cheaper ‘time of use’ tariffs.
“Millions of people have already been left behind in the smart meter rollout, and it is vital that the energy industry urgently fixes problems with existing meters and properly compensates customers for failures.
“Outstanding smart meter faults can block access to cheaper tariffs altogether, meaning some households are penalised week after week through no fault of their own.
“The biggest issue we see is when smart meters don’t communicate with suppliers — a problem that lies with the Data Communications Company (DCC) who have been paid millions from our bills yet still don’t operate a fully working system.
“And with North Sea gas production in steep decline and the UK set to rely on imports for 94% of its gas by 2050, we must be accelerating efforts to reform electricity pricing — not embedding unfairness.
“Access to smart tariffs must be universal, and smart meter failures must not become a reason why the most vulnerable pay more for energy.”