Brace yourselves, energy companies. Although the political storm of the Competition and Markets Authority probe seems likely to lose intensity before making landfall next April, a fresh hailstorm of political pressure is brewing.
It may have come as a relief this week as the media glare shifted from energy utilities to telecoms, but savvy suppliers will already have realised that the TalkTalk data hack signals particular trouble for energy firms.
This week, the issue of data protection comes a close second to tax credits in holding Westminster’s often fickle attention. But with business and media minister Ed Vaizey calling on all FTSE 350 companies to ensure “robust” data protection procedures, the pressure is only likely to increase.
The smart meter rollout is set to expose energy companies to a level of data risk unprecedented in the sector. And worryingly, it has already raised concerns over data privacy years before meters reach the majority of UK homes. For an industry-wide initiative hoping to help rebuild trust,
a data privacy scandal could prove to be the final nail in
the coffin of consumer engagement.
Politicians will doubtless take the opportunity to score points with the electorate by insisting on watertight data rules for big companies – as well they should. But rather than hunkering down to weather yet another storm, energy companies should also seize the opportunity to clear the air on energy use data and plans to safeguard privacy. Forewarned is forearmed.