16 April 2024 - Energy Consumers Network Minute

Energy Consumers Network

Note of Fourth Meeting

Online

Tuesday, April 16^th 2024 

Attendees:

Chair - Lewis Shand Smith

Advice Direct Scotland - Pamela Stewart

Age Scotland - Adam Stachura 

Changeworks - Laura Webb

Consumer Scotland - Sam Ghibaldan, Kate Morrison, Grace Remmington, Alastair Wilcox (for RTS only)

Energy Action Scotland - Frazer Scott

Energy Saving Trust - Sophia Bates

Fuel Bank Foundation - Siobhan Doyle 

SFHA - Eli Harji

Trust Alliance/Energy Ombudsman - Craig Wilson

Individual Member - Dan van der Horst

Observers

Ofgem -  Adam Cochrane-Williams

Ofgem - Charlotte Friel from RTS discussion onwards           

Apologies

Citizens Advice Scotland - David Hilferty

Ewan McCall - The Wise Group

Secretariat

Consumer Scotland - Andrew Faulk

 

Welcome and Introductions

1. The Chair welcomed members of the Network to the meeting.

Note of previous meeting

2. Agreed with changes submitted in advance by members

Scottish Energy Advisory Board (SEAB)

3. A meeting of SEAB is set for April 24^th. Members were asked to highlight issues they would like to be raised at that meeting in their updates.

Members’ Updates

4. Consumer Scotland

• • The most recent energy consumer tracker was published in April. Overall, the tracker data show that energy affordability is improving in line with falling prices, but there is still a significant minority of consumers in debt, and the report explores their experience in detail
  • Research on disabled people’s energy costs is also due to be published and will be circulated to members when available. The following phase of the research will solutions, and Consumer Scotland is keen to include the views of ECN members on the findings

5. Age Scotland reported that

• • Their helpline has recorded problems around Warm Home Discount payments, particularly in relation to Scottish Power, and as well as anger about underspend in the scheme. (EAS noted that the geography of WHD underspend was not clear, and that the previous financial year’s allocation had in practice been delivered almost in full in Scotland)
  • The emphasis by some suppliers on online only applications has also excluded some, less digitally connected older people
  • Separately, metering issues continue to be a problem too, including but not limited to issues with smart meters. Consumers are now faced with a penalty if the supplier’s engineer can’t locate a problem when on site, which is putting people off engaging
  • A number of members noted similar experience, and highlighted that there is a nationwide shortage of meter engineers. This is one among other skills shortages already identified

6. Trust Alliance / Energy Ombudsman

• • The main recent change is that the energy ombudsman service is being extended to include small businesses up to 50 people (the service is currently limited to micro business as at present). This service is expected to be live by winter 2024-25
  • Also, a remedies team has been established, recognising previous concerns that Ombudsman were not always implemented by supplier
  • The Ombudsman has started to track RTS complaints more rigorously

7. Advice Direct Scotland

• • Previously reported trends are continuing, in relation to caller numbers and issues
  • In addition, staff are currently working on closure of programmes supported through the now ended Fuel Insecurity Fund

8. Energy Action Scotland

• • As with others, ongoing work including finalising some current contracts.
  • There remain issues for smaller organisations, including Housing Associations, in contacting suppliers other than through main customer service numbers
  • Campaign work is continuing on debt and social tariff
  • Echoed concerns from other members on metering issues: smart meter installation data does not indicate that the roll out rate is increasing, and that this faster  undermines delivery of both benefits to customers and Scottish Government targets on take-up of low carbon technologies

9. Fuel Bank Foundation

• • As highlighted by others, in final stages of closure of the Fuel Insecurity Fund. Noted that the Household Support Fund has now been extended by the UK Government, and there will be associated consequential funding to the Scottish Government which could be used to restore the FIF
  • Previously, the FBF network and financial distribution had been proportionately higher in Scotland than England and Wales, but that position has now reversed
  • Not currently having to restrict Scottish operations, but this option will be considered if financial arrangements do not change

10.  SFHA

• • As highlighted by EAS and others, SFHA has received many reports from Housing Associations of delays in getting meters installed, repaired and of debts associated with previous tenants being cleared.
  • All of these contribute result in properties being unoccupied for longer than is necessary in the short term, as well as presenting barriers to installation of low carbon technologies and appropriate tariffs needed to maximise their benefits to tenants in the medium and longer terms
  • Detailed data is being gather on this issue and will be passed on stakeholders once available

11.  Energy Saving Trust

• • Seeing a continually increasing proportion of householders applying who are eligible for public sector support; this suggests both change of profile for EST’s client group, and an absolute increase in active numbers seeking assistance among that group
  • Also seeing an increase in rogue traders offering home improvements / new heating systems

12.  Changeworks

• • Similarly, little change from previous updates, but seeing more cases around RTS
  • Working with MPs/MSPs on this, looking for named contacts in each relevant supplier to help ensure delivery and accountability

Radio Teleswitch meters (RTS)

13.  Building on discussions of RTS issues at previous ECN meetings, Consumer Scotland had prepared an updated briefing on the current technical position.

14.  Members emphasised their concerns around the continuing slow progress, with an estimated 249,00 meters needing replacement in advance of the switch off deadline. As discussed at previous meetings, there are both short term, severe risks to some consumers as a result of  accidental disconnection as well as longer term, significant risks in relation to further undermining trust in the energy sector, with associated impacts on the transition to lower carbon, lower cost heating.

15.  While RTS concerns are GB-wide, solutions are recognised as harder to implement in Scotland because of the combination of the number of households affected, remote geography, poor Wide Area Network coverage and Load Managed Areas.  

16.  While members reported growing political interest, it is not clear that the answers received by politicians who have raised issues are providing comfort. Some suppliers had still not updated their websites. More positively, however, members  agreement that the Scottish Government is now more aware of RTS problems.

17.  Looking ahead, members agreed that a number of actions will be necessary to ensure delivery of the RTS transition, covering information and engagement as well as technical aspects. ECN members can and do help individual clients with some elements, as well as with engagement at community level;  however, delivery needs to be driven by Ofgem and Government. The opt-in approach used for smart meters will not be sufficient in this case, and simplicity of messaging is important for consumers.

18.  Ofgem highlighted that they are aware of the issues, are seeing more contacts, and are looking at the incentives on suppliers to act. They noted that three suppliers cover the vast majority of RTS meters. Ofgem would also welcome further engagement with ECN members.

Debt and Affordability

19.  Ofgem sought the views of the group on their debt and affordability call for input. Discussion was limited by the time available.

20.  Ofgem highlighted key questions on which they would welcome ECN input around:

• • whether current, historically very high levels of debt are a relatively short lived issue following from the energy price crisis, or an indication of a more systemic concern; and
  • on the best way to manage impacts / best practice on debt collection
  • issues around the price cap and standing charges are also related to this.

Date of Next Meeting

21.  The next meeting will be arranged before the summer holiday period.