Ofgem consultation on RTS shutdown action – Northern Isles representatives respond
Northern Isles representatives Alistair Carmichael MP, Liam McArthur MSP and Beatrice Wishart MSP, have today responded to news that energy regulator Ofgem is consulting on new rules to ensure that Radio Teleswitch Service (RTS) meter users are protected ahead of the shutdown of RTS on June 30th. 600,000 RTS meters remain to be replaced across the UK before this point, with thousands of homes in Orkney and Shetland still needing smart meters upgraded.
The isles representatives have noted the belated announcement of action by the regulator, and the concession by Ofgem that customers must be given tariffs that leave them ‘no worse off’ than their previous RTS tariff, but voiced concern about uncertainty in the “reasonable steps” which would be required of energy suppliers to upgrade meters, in light of both logistical and signal issues which have slowed smart meter rollout in the isles.
Ofgem stated in its consultation that after the shutdown:
- “the licensee cannot supply electricity to premises that rely on RTS technology [unless the meter cannot be replaced by “reasonable steps” within the timeframe]
- “the licensee must take all reasonable steps to replace the RTS meter within 30 working days when a consumer switches supplier
- “the licensee must take all reasonable steps to provide a tariff that leaves the consumer ‘no worse off’ than their existing arrangement as a result of an RTS meter upgrade”
Orkney and Shetland MP, Alistair Carmichael said:
“It is good news – albeit late in the day – that Ofgem is finally taking action on RTS, but this announcement leaves a lot left unanswered. It is easy to talk about suppliers taking ‘all reasonable steps’ but what seems like a reasonable effort to someone in the Home Counties may not be the same as in the Northern Isles. The devil will be in the detail, but what matters is that we get meters replaced – urgently – and that they work for everyone.
“What is welcome, at least, is the concession by Ofgem that RTS customers must be left ‘no worse off’ financially under their new tariff. This is a point I have been pressing the government on for some time so we can and will hold the regulator to this commitment now.”
Orkney MSP Liam McArthur said:
“This belated consultation from Ofgem finally acknowledges what we’ve been warning about for months, namely that energy companies need to get to grips with the specific challenges the RTS switchover poses in island communities. However, there remain serious questions about what these proposals will mean in practice.
“With Orkney facing some of the highest fuel poverty rates in the country, we need cast-iron guarantees about how vulnerable customers will be supported. Vague assurances about customers being ‘no worse off’ need to be backed up with practical, and if necessary, funded solutions.
“Orkney also has one of the lowest rates of smart meter roll out, highlighting the scale of the challenge if the RTS switchover deadline is to be met. Time is running out so Ofgem must ensure any new rules set out clear, practical and explicit requirements for suppliers when it comes to island communities. A one size fits all approach just won't cut it.”
Shetland MSP Beatrice Wishart said:
“With only a few months to go until the shutdown of the RTS service, this consultation is too little too late from Ofgem and demonstrate they’ve been asleep at the RTS wheel. It shows plans are way behind where they need to be.
“With around 5,000 properties in Shetland likely to be affected, many of my constituents have real anxiety about energy suppliers’ inability to change their meters before 30th June, and what will happen after the RTS switch-off. This is national infrastructure but yet again it demonstrates how we in Shetland are at the end of the line and left until last.”