It’s been billed as an opportunity to deliver a “new era of consumer empowerment” by the government. Launched last November, Midata is a scheme designed to give consumers access to their personal data in a portable, electronic format. The initiative – which companies sign up to on a voluntary basis – forms part of the Consumer Empowerment Strategy set out by the Department for Business Innovation and Skills (BIS) in its Better Choices; Better Deals paper in April 2011. It has backing from 26 organisations, including the big six energy suppliers.
Midata aims to empower customers by giving them access to data about how they, and others, interact with the companies they use. Customers can then use this data “as they see fit”, says a spokesperson from BIS.
This might be by inputting their energy consumption details into an application that helps them find the best energy deal, or by allowing them to map their spending patterns over a period of time. Customers should be able to see whether their bad experience with a company is a one-off or whether the company gives consistently bad service. They should also be able to join other consumers to take on the large organisations they complain about.
Overall, consumer organisations support what Midata is trying to achieve. “This initiative will help consumers make more choices, such as the need to switch energy suppliers,” says Fiona Cochrane, energy policy team leader at Which?
However, some also have concerns. Consumer Focus, like Which?, supports the initiative’s aims, but says it is unclear how Midata will work in practice – for example, how customers will keep control of their data and how it will be used and shared. Another concern is that data will be lost, leaked, misused or stolen. Vulnerable individuals must be protected, and consideration given to the different consent models required for these customers, says Zoe McLeod, head of smart and sustainable energy markets at Consumer Focus.
Liability is also an issue. “In a Midata world, customers could effectively become their own data managers. What happens, for example, if moving information on their bank account results in money being stolen? Who is liable?” McLeod asks.
Cochrane is concerned that if organisations have access to someone’s energy data, their banking information and shopping habits, this creates a “full picture of their life”. She says privacy protection should be in place to prevent access from intermediary companies. BIS says the government will not be storing people’s information in a “central information bank” or have access to it. “This is personal information released to the customer for the use of the customer,” a spokesperson says.
As to what consumers want from the scheme, the Midata Strategy Board has commissioned research into customer demand. Regarding utilities, BIS says this shows consumers would like to know their consumption patterns, including their peak times of use, seasonal usage and which items are the heaviest energy users.
In 2010, Consumer Focus carried out a study with the Information Commissioner’s Office into people’s attitudes towards the sharing of personal information. The study’s found that people wanted choice and control over what data was held on them and with whom it was shared. Customers also wanted information in a format that would allow them to compare deals on a like-for-like basis. “This is particularly important as we move towards multiple rate time-of-use tariffs, demand-response deals and more bundled offers in a smart world,” says Mcleod.
The research also found that detailed information on energy usage can help people identify where they can make energy savings. This may include sharing information with neighbours or other communities so they can make comparisons with similar households, pool resources, or participate in energy saving competitions.
Energy companies that have signed up to the scheme say it is early days when it comes to discussing preparations. An Npower spokesperson says the company is “working closely with and supporting government to deliver Midata during the first half of this year”. British Gas says it is continuing to participate in “constructive dialogue” with BIS regarding practical details. A spokesperson for the company stresses that for Midata to be a credible service on which consumers rely, it will be vital to address “issues of data security, consistency and integrity”.
Paul Delamare, head of downstream policy and regulation for EDF Energy, says that having introduced annual statements already, making similar information available electronically to consumers is “a natural next step”. He says EDF believes consumers will want data in a simple format that can be used by tools such as specialist mobile phone apps and websites developed to help them make appropriate choices in the market.
While recognising that the main issue for Midata is one of information security, EDF Energy believes it is well prepared because “we already provide online account access where this is addressed”, Delamare says.
According to the Energy Retail Association, the challenge for energy companies will be how to make data accessible for all who want it. A spokesperson says it will also be important “to strike a balance between providing a service that is useful and of a high quality, whilst also being cost effective and protecting customers’ information”.
McLeod says it will be vital for energy companies to work with other organisations to allow customers to compare behaviour and deals on a like-for-like basis within the sector, and also potentially across sectors. “Companies will need agreed standards, commercial agreements and perhaps infrastructure,” she says.
Utilities will also have to work with switching sites to develop processes and sector-wide agreements on technical standards, advises Cochrane.
In the longer-term, Midata aims to have as many businesses participating as possible and would welcome the involvement of water companies “as it would make more data available”, the BIS spokesperson says. But the department recognises that water companies will find it impossible to compile this data for everyone because many households are not metered.
BIS believes that as the first government-
co-ordinated scheme of its kind in the world, Midata has the potential to be beneficial to both consumers and businesses. “We want Midata to act as a trailblazer, placing the UK at the forefront of information innovation,” says BIS.
To achieve this, BIS says the input of the utilities industry could be crucial. “It is a great springboard from which the Midata project can start demonstrating its value.”
Kathy Oxtoby is a freelance journalist.
This article first appeared in Utility Week’s print edition of 2 March 2012.
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