EDF Energy has avoided enforcement action for missing its smart meter roll-out target for last year, but will have to make a £350,000 payout to Ofgem.
The energy giant has admitted it was “disappointed” at being three weeks late in complying with the installations deadline. It has agreed to pay the money into the regulator’s consumer redress fund, which supports vulnerable customers and the development of innovative products or services not currently available to energy consumers.
Due to these steps, the regulator today (15 June) confirmed it will not be taking formal action against the company.
Under the Government’s smart meter programme, suppliers must by law “take all reasonable steps” to roll out the devices to all homes and small businesses by the end of 2020. Larger suppliers are required to meet individual annual targets, monitored by the regulator.
EDF Energy has since submitted targets for 2018 which it plans to meet.
Jim Poole, Director of Customer Operations at EDF Energy said: “EDF Energy is working hard to meet its smart meter programme objectives, delivering the benefits of smart meters to our customers, and we are disappointed that we were three weeks late in reaching our 2017 target.
“During 2017 we doubled our smart meter installation rates and employed more people to install smart meters. We recovered the shortfall quickly in 2018 and are on target for this year.
“We have worked with Ofgem to resolve this matter quickly and have agreed to make a payment to a fund for vulnerable customers.”
As of March 2018, a total 11 million smart meters had been installed by all suppliers in households with the aim of helping consumers control their energy use and save money. They mean customers no longer have to take meter readings or be landed with bills based on estimated readings.
Ofgem says it is following suppliers’ approaches to the roll-out closely and will hold them to account if they do not meet their obligations.
Last month it also reminded suppliers that their customer communications to offer installations must be transparent and accurate.
“While we encourage testing of different approaches to engagement, suppliers must consider whether the approach is appropriate for the customer and adapt it based on customer feedback,” it said.