Radio Teleswitch Service: letter to UK Government Energy Consumers Minister

To: Miatta Fahnbulleh MP, Minister for Energy Consumers, Department for Energy Security and Net Zero

From: Alasdair Allan MSP, Acting Minister for Climate Action 

8 January 2025

Dear Miatta

I am writing to put on record our growing concerns around the Radio Teleswitch Service (RTS) switch-off. I believe that significantly more action is needed urgently to protect Scottish consumers against the negative impacts of the switch-off.

I recognise that Ofgem and Energy UK are leading a cross-industry response to this change. However, feedback from consumer organisations such as Citizens’ Advice Scotland and members of the public has reaffirmed my view that the UK Government must use its powers to direct urgent and proportionate action.

My understanding is that over 160,000 Scottish properties still have RTS meters. Orkney and Shetland have the highest proportion of RTS meters still to be replaced (and highly disproportionate to population size), closely followed by other Scottish communities, many of which are in rural and island areas.

As you know, if meters are not replaced by the switch-off date then people who rely on the RTS will experience considerable detriment, particularly in rural and island communities.

While 99.3% of the UK is covered by the smart meter communications network, this coverage does not yet apply to some rural and island parts of Scotland, England and Wales. It is imperative that the UK Government and Ofgem update the regulations to allow the Data Communications Company (DCC) to use mobile technology to provide a signal to homes in Scotland.

I recently visited the Western Isles Citizens Advice Bureau (CAB) and heard in stark terms about the challenges faced by them and many other communities in securing an appointment with their supplier to upgrade their RTS meter. We also discussed the potentially devastating consequences on fuel poverty and access to energy, particularly for households using storage heaters that need to be charged overnight, if RTS meters are not upgraded in time.

In my previous letter, I asked you to urge energy companies to prioritise RTS customers when progressing the smart meter roll-out programme, in line with the UK Government’s targets. However, for the 0.7% of communities where smart meters are not an appropriate solution (because of weak or insufficient WAN signal), suppliers must be required instead to offer an alternative. This might for example comprise a non-connected smart meter with pre-programmed switching times – providing a temporary solution in the short term.

I also believe it to be a serious problem that – while there are penalties for failing to meet smart meter targets – there are no penalties for suppliers who fail to replace RTS with smart meters (whether fully functional or pre-programmed) by June this year. There are also no penalties for DCC for failing to deliver smart-meter coverage across every part of the country.

I believe that there must, as a matter of urgency, be RTS related obligations included in Ofgem licence conditions on both suppliers and the DCC which compel both to use every tool available to ensure households and businesses across Britain are not left behind. For suppliers, this has to translate in practice to ramping up the number of meters upgraded, including targeting several homes or businesses en masse.

Finally, in instances where meters have been upgraded, I have been made aware of instances where consumer bills are rising considerably due to the supplier changing the tariff. I believe it to be unacceptable for consumers to be unwittingly penalised for upgrading their meter and that suppliers should be obliged to ensure that consumers are transferred to a like-for-like or improved tariff as part of their meter upgrade. I would like the UK Government and Ofgem to give this due consideration.

Although it is important to note that this issue is reserved, and the Scottish Government has limited powers to intervene, we will continue to do everything we can to raise awareness and drive action, including continuing to engage and work with stakeholders across the public sector to raise awareness of the switch off.

In spring, I plan to chair the Scottish Government’s Energy Consumers Roundtable. In my previous letter, I made an invitation to jointly chair that roundtable along with the Welsh Government, recognising the need for collaborative working to address the issues faced by energy consumers. I note that you have recently committed to holding a UK Government roundtable on the RTS switch-off following a parliamentary debate. I believe it is important, and consistent with our commitment to meaningful collaboration, that the Scottish Government be involved in any discussions held on the RTS switch-off.

I look forward to your response.

Yours sincerely,

Alasdair Allan