The government says it plans to put energy customers “in control of their data” by implementing midata in the sector.
Midata is a method of electronically transferring customers’ data with consent from a company system to a third-party intermediary using an application programming interface.
In a response to the call for evidence published on Friday (27 July) the government said midata in the energy sector enables customers to access their data “quicker and easier”.
The system is already used by seven of the larger companies within the industry and allows customers to compare energy tariffs on price comparison websites using personal data held by their current supplier.
It will be implemented through an Ofgem-led amendment to its standard licence conditions.
Concerns have been raised regarding an “ambitious” target to respond to the key issues of informed consent and the verification of consent by the end of February next year.
In a project lab hosted by Ofgem at the Department for Business, Energy and Industrial Strategy (BEIS) on Friday 27 July delegates from across the sector were invited to discuss and shape the issues surrounding the regulator-led initiative.
Several issues were discussed during the project lab including data classification and the level of protection that would be required and how companies will verify customers who wish to access their personal data.
Simon Francis, a midata project engagement manager from Ofgem, revealed during a presentation that an “ambitious” target has been set to finalise plans for the implementation by the end of February next year.
This prompted several delegates to raise concerns that smaller providers will not have the resources to spare and that the deadline for completing the design of the system is too soon.
Other concerns raised included a change in attitudes towards personal data amid recent breaches.
Some attendees said they recognised and shared some of the concerns but were willing to do their best to ensure the deadline is met.
Three working groups (user engagement, design authority and industry delivery) have been established and will meet over the summer to consider aspects of the design specification.
Energy and clean growth minister Claire Perry, said: “This government has committed to an energy market that works for everyone and consumer control is a key part of that.
“Midata will mean that energy suppliers will have to put consumers in control. It will allow the fast, secure exchange of data, giving consumers seamless access to the best energy deals, putting money back in their pockets.
“With Ofgem in the lead, we now call on suppliers and industry to get involved to provide the innovative products that will enable consumers to continue feeling the benefits of being in control of their energy use.”