It’s make or break time for energy suppliers

I would say too many, we have major problems not only with the cost of energy itself but also the standing charges and as for energy saving that’s a laugh with the poorest paying for the rich to get richer. When pensioners shiver under blankets in uninsulated homes while paying for private landlords and millionaires to reap the benefits something is very wrong

Jo: I was tuned into the energy debate from The House of Commons this am and the question of Labour freezing energy prices was raised several times and the response was always that it would drive away competition [what competition?] and would lead to increased prices at the end of the period!

I don’t recall any questions regarding re nationalisation as I had to leave before it finished but if this went ahead I would imagine there would again be questions raised about competition keeping prices down and perhaps more importantly questions about increases in general taxation to pay for it which maybe wouldn’t go down very well in a pre election year. The aim was focused on the CMA to attempt to fix the broken market by re establishing competition and introducing more suppliers into it.

With the wholesale price of Gas at a 30 month low, you’ve gotta love how some politicians are only talking about a freeze. I wonder when they’ll talk about a reduction. #theyhaventgotaclue

Nationalisation solves nothing, except maybe to protect an inefficient industry – we need competition within a diversified industry producing energy in a variety of ways which does not make the UK hostage to Russian politics, US shale gas, Middle Eastern oil etc. That requires a government led energy strategy.

What competition?
The UK is known as Treasure Island.
We are charged for goods and services what they dictate to us, because we don’t say NO, unlike other countries.
Funny, this week in the papers, the big FOUR Supermarkets are losing customers to Aldi and Lidl and they are now reducing there prices to get them back. If they can react quickly, why can’t the Energy Companies do the same.
Especially when wholesale Gas/Coal and Oil prices drop.
That is COMPETITION.
Before privatisation we all paid the same and the taxes paid for new Power Stations to meet the new demands, in this ever growing population, of ours
The majority of Energy companies who run and distribute the energy in the UK are foreign owned and they can hold the government to ransom, if they want to invest in new Power Stations or not, at a price.
We are the envy of the world, we have invented over 80% of technology what we take for granted over the years in one way or another.I agree that we need to look at alternative energy resources and not be, so dependent on other countries to supply Gas/Coal etc.
TECHNOLOGIES
RUBBISH – God knows how much we throw away
WAVE – We live on a ISLAND
SOLAR – It doesn’t need the Sun on it all the time
NUCLEAR – ?
These can ALL contribute to Heating and Lighting.
If these can reduce costs, we do not have to rely on other countries to supply and hold us to ransom.

The Government is responsible for ensuring that the energy companies see a benefit in investing in the UK – they are limited companies with shareholders and whether we like it or not they do not have to build new power stations here if they see an uncertain future. Irresponsible statements do not provide this confidence, particularly with an election in the offing. We need a long term energy policy on which all political parties agree – responsible politics rather than point scoring.

“Where customers are vulnerable or unable to engage, they should be appropriately protected and not suffer undue detriment.” Agreed, but exactly what do Ofgem propose to do about this? It’s OK making general statements like this to placate the consumer, but we need concrete and practical proposals to back it up. We could then all use sensible tariff structures without the concerns of disadvantaging those not on the internet, or those unable to assess their best deal.

Smart meters are a very contentious issue. Some of the reasons for avoiding them are not valid but the cost of the roll out is huge. The same applies with building more wind farms, when what we really need is investment in renewable energy sources that are better suited to producing energy when needed and not just when the wind is blowing.

Beryl, the consumer pays for (or at least substantially contributes towards) smart meters, up to £28 on your bill by 2020. These will give the possibility of charging consumers different rates each day depending upon time of use. The hope will be to shift some consumers away from peak times – particularly the 6:00pm cooking slot, even by an hour. This would help even out demand. Consumers would need to be well organised to make use of the advantages of this, but the benefits – a potential 400kWh a year saving – are worthwhile; advantages to the industry are more uniform demand.
Renewable energy could be provided by wave and tidal energy – something we are well-supplied with as an island nation. But where is the effort? I’d rather see money spent on this than other dubious projects.

If that is true then someone needs to work out that there should be no need to replace a smart meter when switching supplier. Let the companies take some time to realise that and postpone the roll out for the time being. 🙂

That’s fine in theory but practice will probably mean different energy suppliers will use different smart meter manufacturers, and that means no standards other than the all have to fit into the same carcass.

How long have mobile phones been around? And its only now they’re heading for a standardised charger. Although that’s still a few years away,

I don’t think competing companies can be relied on to agree a standard. It needs an organisation such as the government to make an informed decision and the companies to comply. That will take time and hopefully delay the roll out until genuine criticisms have been addressed and the installation of smartmeters made much more affordable.

Very much though I support the introduction of a standard phone charger, it does need to be fit for the purpose. I understand that the recommended version is fiddly to plug in and like a USB connector will only fit one way.

Ofgem’s original document says:
“The enduring solution
4.7. As discussed above, the Smart Metering Programme is introducing new industry arrangements to support smart metering that includes the specification for smart meters and the central arrangements under the DCC that will allow suppliers to communicate with them. Smart meters operated under these arrangements in accordance with the Smart Energy Code will be fully interoperable; the new supplier will be able to take over the operation a smart meter with no loss of the core functionality and maintenance of services for customers.”
So it seems your smart meter will communicate with your energy company through the (central) Data Communications Company (DCC). No reason to expect to have to change meters, therefore. Meters will meet standardisation requirements, irrespective of manufacturer/supplier..

DECC has a specification for these devices. That should avoid incompatibility but not with earlier models. It is common sense to start with a standard and stick to it. We also need to consider the concerns about smart meters and ensure that those that are valid are addressed before proceeding.

Out of principle, I don’t want a smart meter until we see a professional approach and also cut the cost to the consumer. Many people are struggling to pay their energy bills at present and what they do not need is to have to pay the cost of the smart meter rollout.

That’s my understanding too, Beryl. My objection is simply on the basis of the cost of the roll out, which has been discussed in earlier Conversations. I have no objection to anyone having a smart meter if they pay for it and the cost of installation, but I don’t think it is right that the cost of the roll out is just added to everyone’s energy bills.

When we moved into our new house in December 2012, an E.On customer services rep told me that it had been a requirement for some time for every newly-built dwelling to be fitted with a smart electricity meter but that for some inexplicable reason that did not apply to gas meters. I’m not sure this is the whole truth, although it is possible that the government has made it compulsory; I have a feeling, however, that it suits housebuilders to make arrangements with a single major energy company to provide a supply to all of their properties during construction and the energy company then understandably decides that they will provide a smart electricity meter in each separate dwelling as a way of capturing those future customers. I was also told that we would have to pay for a new meter if we decided to switch to another electricity supplier; this does not seem to accord with the government’s wish to open the energy market. Certainly, there must be a standardised installation facility for smart metering although I can see the potential for fraud and misuse of supplies if meters can just be plugged in and unplugged [I presume the base housing will have to be capable of transmitting a report in the event of tampering with the meter and some physical means of retention provided].

Incidentally, although we have a smart electricity meter, we have never used the consumption recording device that was supplied with it. Our electricity consumption hardly varies over the course of the year and is insignificant compared with gas consumption so I haven’t bothered to activate the device; having access to the data is proclaimed as one of the consumer benefits of smart metering but it’s wasted on me!

Although I am opposed to mass installation of smart meters simply on the basis of cost, perhaps they could help suppliers detect those who defraud the companies by bypassing their meter or carry out other modifications to obtain energy without paying.

Traditionally, meters are protected from tampering by lead seals. When I moved into my current home the vendor pointed out that the seal on the main fuse had been broken several years before to install a new consumer unit. It was over 20 years later when the meter was exchanged that seals were fitted. The lack of seals and possibility of fraud should have been spotted by a meter reader.

As with the recent Conversation about Economy 7 meters showing the incorrect time, this serve to demonstrate unsatisfactory performance by supply companies.

Under Network costs it states … “In the first 15 years after privatisation, charges paid by suppliers to transport energy to customers halved under our regulation of network companies.”

which is odd as in the last 15 years the standing charges I’ve been paying have only ever gone up . So something doesn’t add up.

Energy transport costs should be covered in the energy unit cost, as they are directly related to energy consumption, not in the standard charge (which should be related to fixed costs).

Isn’t even worse then? Cos I’m certain my and everyone else’s unit costs have only ever gone up, and that’s even though gas is at or about a 3 year low on the wholesale market too. I wonder what other “junk” I’m having to pay for.

You have been paying a substantial amount of money for wind turbines. Wind power can obviously provide a contribution to renewable power but there is no point in installing large numbers because they cannot produce power 24/7 because wind is so variable. As Malcolm has said, we should be looking at other options such as wave and tidal power. I appreciate that there is pressure to meet targets on renewable energy but when some people are struggling to pay their fuel bills we need a well thought out and cost effective strategy for energy supply.

The cost of energy is a major concern for many people in the UK. The mess that we are in is the combined effect of government (past and present) and industry playing with OUR money. Those who make the decisions have probably never had to worry about paying their energy bills.