Ofgem will be given new powers from May, allowing it to change the way smart meters work by 2025. The new rules stipulate that smart meters will send information about your energy consumption every 30 minutes by default
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In just over three weeks, a major shift in the way smart meters work is set to begin — and it could lower your energy bills.
Energy regulator Ofgem will be given new powers from May, allowing it to change how smart meters work by 2025.
At the moment information about your energy consumption can be sent once a month by default – but Ofgem wants to change this, so that data is sent to suppliers every 30 minutes.
The change means your smart meter will send updates and change your energy prices up to 48 times a day.
The idea is that the restructuring would pave the way for “time of use” tariffs, which would charge customers different amounts at peak and off-peak times.
Ofgem has previously said price increases will result in savings for customers as long as they shift their usage to quieter times.
How the energy bill crisis is affecting you
But households that use energy at peak times, such as doing laundry in the early evening, could be billed more.
According to a timetable already published by the regulator, Ofgem is expected to be granted the new smart meter powers in May – starting just over three weeks.
The new rules are to be implemented by 2025.
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Most households currently have tariffs that charge a flat rate regardless of when you use energy.
Some consumers with smart meters can already access “time of use” tariffs – but they must “opt-in” for half-hourly updates.
This is not a default that Ofgem would like to introduce.
Customers who do not wish to share this data must request an “opt-out” – but the change will not apply until the next time the bill payer signs an energy contract.
According to the current regulations, households with a smart meter no longer have to do a mandatory reading once a month, but every day.
In a statement released in February this year, an Ofgem spokesman said: “This major system upgrade is a significant milestone on the UK’s path to net zero.
“It will enable a more efficient, flexible and environmentally friendly energy system that will save billions of pounds a year on everyone’s energy bills.
“Ofgem will work closely with industry to ensure this important upgrade is delivered while ensuring people remain protected in vulnerable situations.”
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It comes after households have been hit by a £700 increase in their energy bill since last Friday after Ofgem raised its price cap for those with typical use.
For those on a standard plan paying by direct debit, the Ofgem price cap has increased from £1,277 to £1,971 – an increase from £693.
Prepay customers have seen a bigger jump, with their price cap increasing by £708 from £1,309 to £2,017.
https://www.mirror.co.uk/money/household-bills/huge-smart-meter-change-could-26636953 A big change in smart meters could lower energy bills as Ofgem gains new powers next month