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.
| Supplier | Total Voluntary Redress Payments made into EIVRF |
| British Gas | £3.37m |
| OVO | £2.39m |
| Bulb | £1.83m |
| E.ON | £1.72m |
| Scottish Power | £1.24m |
| SSE | £252k |
| Total | £10.8m |
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.
“A number of suppliers provided information on the mitigating factors that impacted their ability to meet their annual targets. Ofgem considered the impact of some of these which is reflected in the levels of alternative action payments agreed with suppliers, but a detailed review which would only be possible in the context of enforcement action was not undertaken,” it added.
It has also been revealed that in addition to paying £1.24 million, Scottish Power has agreed to pay £440,000 into the EIVRF in relation to its 2019 annual milestones smart metering obligations.
Responding to the news an Eon spokesperson said: “Smart meters are the foundation of our future energy system and we know customers with a smart meter are clearer on their energy use, they have the information they need to lower their bills, have less debt and experience fewer issues with their account.
“We have been installing smart meters for a decade with more than five million meters in customers’ homes and businesses. We continue to work hard to engage people and convince them of the very real benefits of having a smart meter and while we are disappointed to have narrowly missed the target set by our regulator – along with a number of other suppliers, both large and small – Ofgem recognises the challenges we and other suppliers face.”
A spokesperson for SSE Energy Solutions said: “As a supplier that strongly believes smart meters are integral components in reducing consumer energy bills, we are making every effort to accelerate installations across the businesses, charities and public sector organisations we supply.
“Ensuring 58% moves to 100% completion over the next two years will be the most challenging leg of the smart roll-out so government and industry need to re-examine the smart policy framework and ensure it is fit for purpose.
“Nothing should be off the table including consideration of a move to mandatory installations of smart meters, starting with the non-domestic market, to ensure the 2025 deadline is met.”
The latest four-year Smart Meter Targets Framework was introduced in January 2022 and sets energy suppliers’ minimum annual smart meter installation targets, with Ofgem monitoring their progress.
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.