Ofgem has confirmed new smart meter reporting requirements for energy suppliers, following accusations from the government that retailers were “deprioritising” non-domestic smart installations.
Earlier this year the government confirmed it would amend the Smart Meter Targets Framework so that mixed portfolio suppliers will be set separate domestic and non-domestic installation requirements in Year 3 (2024) and Year 4 (2025) of the framework.
Previously, retailers that supply both customer types had a single annual installation requirement that reflected both components of their portfolio. This meant they could meet their requirement through any combination of domestic and non-domestic installations.
“This proposal is made as we have seen growing evidence that mixed portfolio suppliers are deprioritising their non-domestic rollouts and that this is posing a risk to benefits realisation for small businesses and public sector consumers,” the government said in its rationale.
Following this decision, the energy regulator has confirmed it will be making changes to the reporting requirements in order for them to align with the new domestic and non-domestic Targets Framework for 2024 and 2025.
The modifications will take effect from 5 January 2024.
It comes as Ofgem recently revealed that six energy suppliers have agreed to pay out almost £11 million after failing to hit their smart meter installation targets last year.
There was a total shortfall of more than one million smart installations after British Gas, Ovo, Bulb, Eon, Scottish Power and SSE fell short of their targets for 2022.
As a result, they have agreed to pay a total of £10.8 million into Ofgem’s Energy Industry Voluntary Redress Fund (EIVRF), with British Gas paying the most at more than £3.3 million.
Ofgem said that as the suppliers made these voluntary payments, it has decided not to conduct a full investigation into the reasons for the failings.
According to the latest government figures, more than 33 million smart and advanced meters have been installed in homes and small businesses across Great Britain, which represents 58% of all meters in the UK.