Safeguarding consumers' interests is vital for the successful delivery of smart metering. Ofgem is introducing a package of measures to help improve the protection of consumers. There are already strong rules in existence providing consumer protection - which we will be looking to strengthen - and we will expect suppliers to abide by them.
In particular, we will cover:
- data privacy and security controls;
- consumer safety measures;
- protections for vulnerable and low-income consumers;
- regulations for disconnection;
- guidelines on sales and marketing during installation;
- ability to compare prices between suppliers and services;
- provision of energy consumption advice; and
- the ability to switch quickly between tariffs and suppliers.
On the cost of smart metering, we expect that suppliers will pass through costs and benefits as part of cosumers' bills, as with other elements of supply, such as meter reading.
A cost/benefit analysis by the Department of Energy and Climate Change estimates that, by 2020, an average consumer will be saving £23 a year on their gas and electricity bills, as they reduce consumption in response to information provided by smart meters. Some consumers will be able to save considerably more.