The UK competition regulator has agreed to investigate the plight of electricity consumers “trapped” in a specific tariff because of the style of meter in their homes.
Labour’s Lewis Macdonald welcomed the commitment by the Competition and Markets Authority (CMA) after raising the problems associated with dynamically teleswitched (DTS) meters at a meeting in Holyrood this week.
According to Citizens Advice, customers with DTS might not be getting the best deal because not all companies offer a tariff, making it hard to switch supplier.
North-east MSP Mr Macdonald, who was alerted to the issue by constituents living in rural Aberdeenshire, said: “These are people who are already living in some of the coldest parts of the country without access to gas and forced to rely on relatively expensive electricity.
“The bind is that they have these meters in their homes and they can’t, without spending a lot of money (to get more conventional replacement), find an alternative supplier.
“All of the good ideas about enabling consumers to switch supplier don’t apply here. That’s where there is a competition issue to be addressed. People are trapped in this position.”
One elderly Aberdeenshire resident, who contacted the MSP with his concerns, said his DTS electric storage heating system suited him as it means he can maintain a warm house all day.
But he complained about the lack of flexibility and transparency that prevented him from comparing deals and switching to a cheaper one.
The man, who is in his 80s and asked not to be named, added: “There are not many of us who are on such a system, therefore we have no real clout.
“I personally feel my supplier (SSE) has been fairly reasonable with me but the whole system needs to be looked at.
“DTS needs to be brought out into the open so that everyone on it knows exactly where they are, how their prices compare with other areas and also if they could be on a better tariff.”
Simeon Thornton, project director of the CMA’s energy market investigation, confirmed he had agreed to take evidence on the subject.