The Times reported on Saturday that the huge discrepancy between DNO charges means that some customers are being charged up to £5,400 for their meters to be moved.
The regulator said it is “grateful” to the The Times for revealing the issue, and said it plans to ask network companies to explain the differences highlighted by the investigation.
The regulated regional monopolies are allowed to recover costs for the work but are not expected to make a profit. But the newspaper reports that meter moving charges vary significantly from £653 with Western Power and as much as £5,400 with UK Power Networks (UKPN).
For digging and refilling a five-metre trench Scottish Power charges customers a minimum of £951, but in Wales the same work costs £293 with Western Power, the Times said.
The report found that even on the same street, costs could vary by as much as 700 per cent.
Houses on the west side of one street in west London are served by UKPN, while those on the east side are served by SSE. The report found that a meter move served by SSE would be charged £570 but the home served by UKPN would be charged £4,560.
SP Energy Networks said in a statement that although it publishes average prices for work on its website it provides quotations that are specific to each customer’s requirements.
UKPN added that its prices “provide excellent value” for customers despite the company operating in the highest cost part of the country.
“We do not charge a premium for connections work in London but our prices reflect the increased costs of operating a utility business in the capital,” UKPN added.
In a statement Ofgem said: “For small scale jobs like installing or moving meters, network companies cannot make a profit. We expect them to only recover a reasonable cost for any work they carry out. For larger connections projects Ofgem has encouraged competition so that customers have real choice in who connects them.”
The regulator said that consumers should always be provided with a quote before having a job done.
“And if they feel they are being overcharged we would encourage them to challenge the network companies,” Ofgem added.