Page 6 - Gi_November2019

industry & Government news

DIGEST UK ENERGY

REGULATOR OFGEM

APPOINTS NEW CHIEF

BRITAIN’S ENERGY market regulator
has named Jonathan Brearley,
currently its Head of Systems and
SMART METER ROLLOUT Networks, as its next Chief Executive.
The Financial Times reports that
Mr Brearley will step up to the top
DELAYED FOR FOUR YEARS job at Ofgem next February, ending
a near six-year reign for Dermot
Nolan, during which the regulator
was criticised for its oversight of
network operators and had a high-
profile run-in with the government
over capping household bills.
His successor will take over at a
time of sweeping change in the energy
industry, as the UK works towards
cutting its greenhouse gas emissions
to net zero by 2050. The goal not only
requires further decarbonisation of
the electricity generation system but
solutions to problems such as how to
replace the gas boilers that heat the
majority of British homes.
Ofgem’s Chairman Martin Cave
THE ROLLOUT HAS BEEN HAMPERED said Mr Nolan had left Ofgem
BY DELAYS AND NEGATIVE PRESS “in a good position to tackle the
challenges facing energy consumers
THE GOVERNMENT HAS pushed back time to fix ongoing technical during this time of transition”.
the deadline for smart energy meter problems and make sure customer Mr Nolan had agreed to extend
rollout by four years until 2024, reports service isn’t sidelined as the rollout his contract by a year to oversee
the BBC. continues,” she said. the introduction at the start of 2019
Previously, suppliers’ deadline was “We’ve seen some energy companies of an energy bill price cap for 11
the end of 2020, but energy firms had use aggressive techniques to try to million households, in which he
warned the technology was not ready. persuade people to have smart meters played a key role.
But the extra time could lead to more fitted as soon as possible to meet the Ministers had initially wanted Ofgem
years of frustration for customers, existing timeline.” to crack down on energy bills without
many of whom are fed up with the new There was a pledge in the intervention from government, arguing
meters they have been given. Conservative Party’s 2017 election the regulator already had the powers
It also means the cost of installing the manifesto that every household and to tackle the problem of longstanding
new equipment is likely to rise further, business would be offered a smart customers on standard tariffs facing
to more than £13 billion in total. meter by the end of 2020 – and there is steep price rises if they didn’t shop
Customers are not obliged to have a still that expectation. around. But Mr Nolan insisted the
smart meter fitted, but energy firms must The government is adamant that its government had to legislate for a cap as
have offered them to all UK households targets are being met and that the new it was a “policy matter”.
by the end of the new deadline. regime does not amount to a let-off for Ofgem also came under attack
The promise of smart meters was that suppliers. The new framework gives for its regulation of energy network
readings would be automatic, billing them until the end of 2024 to install companies, which own the pipes and
would be easier, and a new world of smart meters in at least 85 per cent of wires that supply gas and electricity
flexible charges would be ushered in. their customers’ homes. to homes and businesses, during Mr
In practice, millions of people Minister for Climate Change Lord Nolan’s tenure.
found they had new meters which did Duncan of Springbank said: “We Consumer groups such as Citizens
not work properly if they switched remain on track for suppliers to offer Advice argued such companies had
suppliers - and millions more have not every home a smart meter by the end of been allowed to make “eye-watering”
been given the technology at all. next year, but to maintain momentum profits at the expense of consumers.
Gillian Guy, Chief Executive of Citizens beyond 2020 we are proposing strict Ofgem subsequently vowed to
Advice, thinks extending the smart yearly installation targets for suppliers crack down on the level of returns
meter rollout deadline is a “common- from 2021. This will deliver even investors in energy networks are
sense move” that is good for customers. greater benefits for households and permitted to make.
“This new deadline gives suppliers reduce emissions.”

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News.indd 1 17/10/2019 13:45