People with a Smart Meter could see their bills slashed thanks to new changes coming into place. From May energy regulator Ofgem is being given new powers which will allow it to change the way smart meters operate by 2025.
The changes mean people's energy bills could be way more reflective of what they actually use, and when - and significantly reduce them.
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At the moment, information about your energy usage can be sent once a month as a 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 out updates, and change your energy prices, as much as 48 times a day.
The idea is that the shake-up will pave the way for "time of use" tariffs, which would charge customers different amounts at peak and off peak times.
Ofgem has previously said surge pricing will lead to savings for customers, as long as they shift their usage to quieter times. But households who use energy in peak times, such as doing their washing in the early evening, could be charged more.
Ofgem is expected to be granted the new smart meter powers in May - so from just over three weeks time - according to a timeline already published by the regulator. The new rules are then expected to be implemented by 2025.
Most households are currently on tariffs that charge a flat rate, regardless of what time you use energy.
Some consumers with smart meters can already access “time of use” tariffs - but they must “opt in” to half hourly updates. This isn’t a default setting, which is what Ofgem wants to introduce.
Customers who do not want to share this data will have to ask to "opt out" - but the change won't apply until the bill payer next signs an energy contract.
Households with a smart meter will also have to submit a mandatory reading every day, rather than once a month under the current requirements.
In a statement released in February this year, a spokesman for Ofgem said: "This major system upgrade is a significant milestone on Britain's path to net zero.
"It will enable a more efficient, flexible and greener energy system which will save billions of pounds per year on all consumers' energy bills. Ofgem will work closely with industry to make sure it delivers this major upgrade while ensuring those in vulnerable circumstances remain protected."
It comes after households were hit with a £700 hike to their energy bills from last Friday, after Ofgem increased its price cap for those on typical use. For those on a default tariff who pay by direct debit, the Ofgem price cap has gone up from £1,277 to £1,971 - a rise of £693.
Prepayment customers have seen a bigger jump, with their price cap going up by £708, from £1,309 to £2,017.
