Publications

Citizens Advice Scotland (CAS) believes it is more important to get the smart meter rollout right than it is for it to be rushed through to arbitrary deadlines, and we have long been concerned that the 2020 smart meter deadline was so unrealistic that it risked having a negative effect on consumers. In June 2016 we therefore published a report that called for the smart meter rollout to adopt an interim target of 80% smart meter coverage by the end of 2020, with 100% coverage achieved no later than the end of 2025. We reiterated this call in August 2018, and so we welcomed the UK Government’s September 2019 announcement that the smart meter rollout is to be extended to the end of 2024.

This new-found pragmatism provides an opportunity for a review of the targets, incentives and penalties to which energy suppliers will be exposed as the smart meter rollout progresses over the next 5 years. However, it must also be acknowledged that there remain multiple technical barriers to the universal rollout of smart meters, particularly in remote rural areas and for many Scottish households that use traditional electric storage heaters as the primary form of space heating.

These constraints lead CAS to be concerned that consumers reliant on electric heating in Scotland will be among the very last in GB to benefit from the smart meter rollout. Indeed, under current proposals we believe that it would be possible for electricity suppliers to comfortably exceed the proposed post-2020 smart meter targets without a single Scottish consumer with traditional electric heating having benefited from the rollout. This risks placing the costs of maintaining the traditional meter network onto a relatively small customer base, increasing prices for a group of consumers where a majority (52%) already struggle to afford to heat their homes to an acceptable standard.

CAS does not underestimate the significant challenges required to overcome these issues, but we are equally clear that the smart meter policy framework and the regulation of the retail energy market post-2020 must not unfairly burden consumers with additional costs they have no opportunity to avoid. We therefore believe that there may be a need to provide short-term protection for consumers whose ability to access the benefits of smart meters is restricted by the industry's readiness to provide them with suitable metering equipment. We also consider that suppliers could be better encouraged to deliver a market-wide smart meter rollout in all areas of GB if the proposed minimum coverage level were to apply separately in each electricity distribution network area.

While CAS supports proposals to move away from the “all reasonable steps” obligation that currently governs suppliers’ smart meter engagement programs, we are also cautious about the impact of holding suppliers to binding, linear annual targets given the technical barriers referred to above. The Citizens Advice network in Scotland already hears the concerns of consumers who have felt pressured into accepting a smart meter by their energy supplier, and even of instances where attempts to install smart meters have been made by domestic energy supply licence holders that are not the registered supplier at the property concerned. This suggests that while the imposition of installation targets backed by financial penalties for non-compliance may be driving the pace of the smart meter rollout, such targets may adversely impact consumers’ experience of smart meter installation and could jeopardise levels of engagement with the planned transition to a smarter energy future. We believe that suppliers may already be suitably incentivised to encourage their customers to embrace smart meters, and we therefore urge Ofgem to place its post-2020 focus on the enforcement of a high quality customer journey throughout the energy transition.

This is CAS's response to the Scottish Government's consultation on the future of low carbon heat for off-gas buildings.

CAS responded to the UK Parliament's Business, Energy and Industrial Strategy Committee energy efficiency inquiry.

Services that are essential for life, such as water and sewerage, should be affordable for all consumers.  CAS' latest research report takes a closer look at characteristics that may indicate whether or not a household will struggle to pay for water and sewerage charges. It also provides an analysis of various proxies that could be used to determine affordability, and at how additional financial support could be targeted towards households that need it most.

The report found that:

• Income is the most accurate indicator of whether or not a household is likely to find water and sewerage charges affordable.
• 12% of households in Scotland spend more than 3% of their weekly income on their water and sewerage charges although not all receive additional financial support through available affordability mechanisms.
• The current proxy used to provide financial relief, based on households being in receipt of Council Tax Reduction, is the most effective one that exists however, difficulties around more closely linking systems and data sets means that some households in need of additional support do not receive it. 
• In the longer term, further research is necessary to identify how support could be more effectively targeted to all households that may struggle to pay.

Mains gas is both the cheapest means to heat homes and the most common heating fuel in Scotland, England and Wales. However many people, particularly in certain areas and demographics, do not have access to, or do not make use of, mains gas for heating their home.

Today Citizens Advice Scotland is publishing our latest report ‘Pylons, Pipes and People: Energy networks in Scotland and their changing role with consumers’.

In late 2017 we commissioned the Centre for Sustainable Energy (CSE) and Changeworks to undertake a research study into the energy distribution network companies operating in Scotland. This study’s particular focus was to explore how these companies currently support consumers and how their role in Scotland can and should change to ensure that consumers, and particularly vulnerable consumers, are most effectively supported as our energy system transforms.

CAS welcomes the Consumer Green Paper and a stronger push by the UK government for greater simplicity, transparency and fairness for those that purchase and use goods and services.

Scotland’s independent consumer advocate has pledged to put consumers first in the regulated industries of energy, water and post. The Consumer Futures Unit of Citizens Advice Scotland has outlined its priorities in its work plan for 2018-19.