OFGEM Complaint: British Gas Misleading Customers On Smart Meters

OFGEM Complaint: British Gas Misleading Customers On Smart Meters 

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[SSM UK]  Subscriber Chris Jones lodged a formal complaint with UK energy regulator OFGEM this morning about British Gas’s current Smart Meter tactics, and kindly forwarded a copy of his letter to us so we could publish it here.

Chris comprehensively pulls apart the British Gas Smart Meter Charter which can be downloaded here.

If you are minded to making OFGEM aware of any concerns you have about British Gas’s sales tactics, feel free to take a copy of Chris’s note and forward it to OFGEM yourself  (consumeraffairs@ofgem.gov.uk).  You might even like to copy it to your local MP and newspaper too.

British Gas is targeting its huge customer base with Smart Meters, and we thank Chris for his efforts.  [/]

COMPLAINT TO OFGEM RE: BRITISH GAS SMART METER TACTICS

From: Chris Jones
Sent: 03 August 2013 08:03
To: consumeraffairs@ofgem.gov.uk
Subject: ASA, OFT and Smart Meters

Good Morning,

I would like to complain about the high pressure tactics being used by British Gas to support its Smart Meter programme. You will gather that there are so many unanswered or deferred questions about Smart Meters (especially involving bad information about obligation, lack of information about variable tariffs and consumer protection, potential health issues) that I am concerned that the programme might be being mis-sold to consumers.

The following complaint against British Gas was declined by the Advertising Standards Authority on the grounds that it does not regulate Customer Charters. The Office of Fair Trading refers consumers to OFGEM.

1. The British Gas (BG) Charter (attached) gives the impression that Smart Meters are compulsory although a customer could delay installation on request:

Compulsion: “…All houses in the UK need to have them by 2019 and we’ve already started to install them”

Deferral: “…If you don’t want to have a smart meter installed yet, just tell us”

In fact Smart Meters are NOT Compulsory.

“Just yet” also suggests inevitability – it will have to be fitted one day, when in fact customers do have a choice to PREVENT installation. Furthermore, approved meters can be used indefinitely provided they remain accurate – so again British Gas’ suggestions are in question.

2. Furthermore, I understand that in a customer letter from British Gas Customer Relations Team representative, Kate Sadler, the customer was told:
“Every single one of our [British Gas] customers is going to have a Smart Meter installed.  This isn’t a customer choice, as we’re replacing all our meters with Smart Meters… We’re installing these meters across our whole customer base as they’re a benefit to our customers… It’s a government initiative… Unfortunately I’m unable to stop this from happening just for you, as as I’ve mentioned above all our customers will be having these installed.”

This contradicts ‘Smart meters, a guide: Dept of Energy & Climate Change’ Jan 22 2013 which stated:

“…Energy companies will be required to install smart meters and take all reasonable steps to reach everyone. However we do not expect energy companies to take legal action to fit a smart meter if they cannot get the householders co-operation”.

Smart Meters are NOT Compulsory and elsewhere British Gas admit:
“… you do not have to have a smart meter if you do not want one; we will remove your details from our rollout programme.”

3. BG say:

“…Once you’ve got a smart meter you can still change supplier; your rights haven’t changed”

In fact the Government has suggested that you rights will change:

Hansard WS19, 13 May 2013 Baroness Verma said this:

“We have decided that from the end of this year, when a customer switches from a supplier who has provided them with a compliant smart meter, the new supplier cannot replace that smart meter with a dumb meter and must either rent the previous supplier’s meter or install their own new smart meter.”

So your rights will change, because after the end of this year, the Government intends that you cannot get rid of a Smart Meter and go back to a dumb meter.

4. BG say:

“…When your smart meters are in place, you can stay on your existing tariff or choose a new one that suits you better.”

BG omit to mention the prospect of new variable tariffs which will VARY the unit price. Reported operating experience abroad is that 80% of consumers see their bills go up with Smart Meters, so how does BG claim that its new tariffs will suit consumers better ? What are BG’s intentions for pricing the existing tariffs ?

5. BG say:

“…We promise to take care of your personal and energy data. Your information will be kept secure to protect it
from misuse.”

How does BG justify suggesting that data will be “secure” when there are so many concerns that Smart Meter broadcasts are vulnerable to data hacking which might allow burglars to detect whether a property is occupied ? Are BG guaranteeing security ?

6. BG do not mention the wireless technology used by Smart Meters. No mention at all. This is interesting. There ARE increasing health concerns about the wireless technology. UK standards are less onerous than other countries which have decided to use wired Smart Meters instead.

7. BG do not say how much their Smart Meter programme is costing consumers along with how much consumers are expected to save. DECC expect a typical consumer to save 3%. More frugal consumers are unlikely to save money once the costs of Smart Metering programme are accounted for.

8. BG over-simplify the supposed benefits of Smart Meters. As well as noticing energy patterns, once variable tariffs are applied that change the unit price at any time of day, Smart Meters require intensive monitoring by the consumer. However, BG only suggest that monitoring is about consumption. BG do not mention price:

“…If you can see the energy you use, you can start to make changes that help you save money.”

9. BG do not mention what to do if a consumer never wants a Smart Meter fitted. BG do not mention that a consumer will not (after the end of this year) be able to have Smart Meter removed. Correspondingly, BG do not say how a consumer can have a Smart Meter removed before the end of this year.

10. BG say:

“…Once you’ve got a smart meter you can still change supplier; your rights haven’t changed”

BG do not admit that Smart Meters allow the Energy Supplier to remotely cut off supplies for revenue protection and as admitted by the Minister, in future for Grid Management purposes. Accordingly, the consumers rights will change with a Smart Meter because they may be forced to accept interruptable tariffs or find themselves having to pay more to have an uninterruptable tariff.

11. BG say:

“…We won’t sell your energy consumption data to any third parties.”

As I understand it, all Energy Supplier consumption data will be centrally held. It may not be sold, but BG do not mention that consumers’ data will be held in central data collection – or any future prospect of use of that consumer data being liberalized, or used as a basis for taxation (such as carbon taxation). Again, BG cannot justify the statement because BG does not control the centrally-collected data.

Regards

Chris Jones

- See more at: http://stopsmartmeters.org.uk/ofgem-complaint-british-gas-misleading-customers-on-smart-meters/#sthash.MO13h56n.dpuf