Energy suppliers pay £10.8m for missed smart meter targets

It comes as the firms reported a shortfall in the overall installation target by a total of more than a million smart meters.  

Following action by the regulator, the companies – namely British Gas, Ovo, Bulb, E.ON, Scottish Power and SSE – have agreed pay £10.8m into Ofgem’s Energy Industry Voluntary Redress Fund (EIVRF). The fund is used primarily to help consumers in vulnerable situations most at risk from cold homes and high energy bills.  

As a result of suppliers agreeing to make these voluntary payments, Ofgem has decided not to conduct a full investigation into the for the shortfall, with a number of suppliers providing information on the mitigating factors that impacted their ability to meet their annual targets.  

The regulator considered the impact of some these, which is reflected in the levels of Alternative Action payments, but a detailed review would only be possible in the context of enforcement action was not undertaken.

Ofgem’s director of enforcement and emerging issues Cathryn Scott said: “The installation of smart meters is a vital step in the modernisation of our energy system and the path to net zero by 2050. Smart meters give customers better information about their energy usage helping them budget and control their costs.”