Ofwat consults on exempting retailers from obligation to read meters at least annually

Ofwat is consulting for ten days until 1 March on an urgent change proposal that would exempt retailers from their obligation under the Customer Protection Code of Practice (CPCoP) to use a meter read to provide an accurate bill to metered customers at least once a year. This is in light of meter reading difficulties being experienced by retailers, contractors and customers during pandemic restrictions.

In CP0008, the regulator has proposed a short, time-limited change which retains the CPCoP requirement but allows a conditional and time-limited exemption for retailers from having to use a meter read to provide an accurate bill where they can demonstrate they have made “all reasonable efforts” to contact the customer before utilising the exemption, and provide evidence that they have met the criteria for the exemption. This includes attempting to contact the customer on two separate business days, where possible using different contact methods.

Ofwat has adjusted the original CP0008 Code change proposal put forward by Castle Water, which sought to allow retailers to bill customers based on estimated consumption. Castle pointed to the mounting backlog of meters that required a read and retailers being unable to comply with the CPCoP while premises are closed and meters inaccessible. It proposed retailers be allowed to estimate consumption where Covid restricted reads, and where customers had been unable or unwilling to provide a read themselves, or non-responsive to retailer contacts.

Ofwat accepted the sentiment, but noted that meter reading is not banned under current Covid restrictions, and that its December Call for Inputs showed retailers faring very different on gathering meter reads. It said: “The submissions we received showed a wide variance across retailers. SomerRetailers indicated that the restrictions have only had an impact on a small number of their customers. Some larger retailers indicated that the restrictions have had a more significant impact, with two reporting a 30-36% reduction in the number of successful meter reads.”

It also said: “We are concerned that as drafted, the change proposal may diminish the responsibility on retailers to adequately engage with their customers in an effort to obtain a meter read or even understand consumption at a premises…We are also concerned that the change proposal suggested by Castle Water could normalise the use of estimated consumption to calculate bills.”