Suppliers introduced the introduction of a new generation of energy meters in 2016, with the goal of most households being able to replace their older meters, including those that are prepaid. This Government Programme was supposed to encourage households to be more conscious of their own usage, alongside real-time information logging, to make it easier for you to communicate with your supplier on bills.

By the end of 2020, the UK Government intended for all domestic and small business customers to have a newly installed smart meter, but the progress has not been as fast as intended, and de to this, the Government and Ofgem are extending the target for suppliers to meet this new regulatory regime. In order to stay on track as new regulations are introduced, you’ll need to make sure your supply is up-to-date by the time it’s enforced in 2022.

The New Energy Governance rules are going into effect next year, so if small businesses want any chance of staying compliant with these new standards before they’re introduced, then now would be a good time for a checkup on all things power related at your home or office space.

Now, energy suppliers need to build in by design how they ensure compliance with “all reasonable steps” requirement in order to reduce the risk of fines and ensure that they are following all mandatory regulations. They also must plan ahead for when regulatory agencies review this performance as current framework nears its close so that risks are mitigated before Ofgem notice any problems.

Finance executives, retail executives and smart programme directors need to challenge their deployment teams on how they are meeting the requirement of reducing commercial risk. Suppliers should be upfront about any gaps or high-risk areas as back end remediation is unlikely to work. Being proactive in addressing any gaps or high-risk areas now so that it wont come back to bite them later.

But what do we mean by “all reasonable steps”?

The regulator is yet to clarify what is represented in this phrase, though there are a number of other experiences within deployment, public compliance investigations and lessons learned from AMR that suggest that as an energy supplier, you must be able to demonstrate your knowledge of the supply side in a number of different areas. This includes recruiting and retaining smart meters, engaging with customers for demand generation purposes as well as managing system scalability and meter portfolio management effectively. Ofgem and our Government are looking for candidates with a strong knowledge of energy utilities to help them fill their recruitment and retention needs. This role requires someone who can engage customers in order to meet targets, as well as manage the utility’s meter portfolio effectively.

Energy suppliers need to quickly diagnose the extent of their exposure across each of the critical domains. They should understand what they’re dealing with and take action if anything is amiss, including gaps in coverage that could leave them unprotected from utility-related emergencies.

As a result of the recent acknowledgement that many are not able to hit the rollout target for smart meters, this has been officially extended for another. Years, meaning that this initiative will continue as an ongoing project with the expectation to finish in 2021. For businesses, considering both current and future requirements and thinking ahead could also ensure that they are able to meet the needs set out by our regulators.

Ofgem have published a smart metering license guide which is intended to help clients and businesses navigate and understand the guidelines set out for smart and advanced meter readings; this contains relevant license conditions, guidance and documents relating to the topic available to all in one location.

Ofgem comment that “This guide is intended as a helpful tool only, and does not modify or replace the conditions in the gas and electricity supply licences. Suppliers should continue to refer to the conditions outlined in the most recent versions of these documents.”

How would it benefit me to install a smart meter?

By installing a smart meter, you have access to a variety of different benefits from a wider choice of tariff to real-time energy on your information usage, all from your own home. By installing a smart meter you will…

Have access to your usage and track your costs from home each day, as well as setting limits on your usage and often controlling your settings by hand from your phone or tablet.
Offers on your utilities that are cheaper, and/or work as prepayment or credit meters without any extra charges or maintenance.

If you use credit…

You will be able to top up from home without visiting a local sale point.

You will be able to see your available balance and keep track at all times. This also means that you are able to see any changes or problems that may occur in your meter, such as abnormalities or malfunctions, which are rare.

Automated top up and set times to heat or cool your home.

You will not need to change your meter if you switch tariffs or providers.

If you are renting a property…

And you pay for your gas and electricity, you are able to chose to have a smart meter; but we encourage you to speak to your landlord before instillation to ensure that the rules in your tenancy agreement remains the same in regards to how energy is supplied to the property and the details of metering there.

And your landlord pays the energy bills, they have the option to refuse a smart meter, but they are not able to do so without reason if your tenancy agreement states you must ask permission for this feature.