Appendix3.1-Restrictedmeters.pdfVIP

Appendix 3.1: Restricted meters Contents Page Introduction 1 Background 2 Responses to provisional findings 7 Further analysis with respect to the supply of electricity to domestic customers with restricted meters 12 Annex A: Six Large Energy Firms’ switching policies 28 Annex B: Restricted meter bills analysis 30 Annex C: Data cleaning 38 Annex D: Additional detailed results of restricted meter bills analysis 41 Introduction 1. Following the publication of our provisional findings report, we have investigated further the characteristics of the retail supply of electricity to domestic customers in GB with restricted meters. In particular, we have considered whether there are features of the GB retail domestic markets relating to such meters (in addition to those identified in the published provisional findings report) that contribute to the overarching feature of weak customer response that we provisionally identified as giving rise to an AEC in our provisional findings report. 2. For these purposes we have defined restricted meters to include any metering arrangements (excluding smart meters) whereby a domestic customer’s electricity consumption at certain times and, in some cases, for certain purposes (for example, heating) is separately recorded. These meters allow for customers to be charged lower rates for electricity used at times when overall demand is lower (and hence the cost of electricity is lower). 3. In this appendix we first set out what we mean by restricted meters, the costs of supplying customers with these meters and the number of customers with these meters. We then look at submissions made in relation to restric