Utilita chief executive Bill Bullen has hit back after the energy regulator announced it was considering issuing the supplier with a final order over its failure to install SMETS2 smart meters.
In an announcement this morning (27 November) Ofgem said it was consulting on an order compelling Utilita to install 15,000 SMETS2 meters by 31 July next year.
If it fails to comply with the proposed final order, the retailer could be banned from taking on new customers.
Ofgem says Utilita has continued to install SMETS1 meters at volume despite the introduction of the “new and replacement obligation” (NRO), where suppliers must take all reasonable steps to install a SMETS2 meter at any new or replacement installation of a meter, from 30 June 2019.
By continuing to install SMETS1 meters in large numbers, Utilita is also increasing the number of SMETS1 meters that will need to be enrolled into the Data Communications Company (DCC). Until all first-generation devices are rolled onto the network, customers with a SMETS1 device who switch supplier may lose smart functionality.
Charles Hargreaves, Ofgem’s deputy director of conduct and enforcement, said: “Ensuring all energy suppliers take all reasonable steps to install SMETS2 meters for new and replacement meters is critical to the success of the smart meter rollout as it enables smart meters to operate reliably for all consumers regardless of their energy supplier.”
However in a statement made today Bullen fired back at the regulator and said the company was left “shocked and disappointed” at the tone of Ofgem’s announcement.
Specifically he raised concerns about connectivity issues faced by SMETS2 customers in the north of England, adding that his company has concerns regarding the robustness and reliability of the devices for their pay as you go (PAYG) customers.
He added: “To say we have been ‘failing to act on smart meters’ is grossly unfair – in fact, we have led the way in prepay smart energy, installing the first smart meter in Britain in 2005, many years before the national rollout began and before any government obligation was introduced. Since 2005, we have installed effective smart meters in 90 per cent of our customers’ homes, giving many vulnerable and low-income households the best energy service they have ever experienced.
“It has been suggested SMETS2 meters are more advanced than SMETS1 meters – this is simply not true. For PAYG customers, SMETS1 meters are proven, secure, robust and reliable and provide excellent functionality that has enabled our customers to control their energy and use approximately 20 per cent less than the average household, and to stay on supply during times of financial struggles. Serving PAYG energy households effectively is our main objective, and SMETS2 meters do not enable us to do this in the same way that SMETS 1 meters do.”
According to the latest figures from the government, more than 22 million smart and advanced meters were operating in the UK at the end of September, with 4 million operating in ‘dumb’ or traditional mode.