Energy suppliers are fined £10.8 million for not hitting smart meter installation targets

As reported by the regulator Ofgem today, Energy suppliers British Gas, OVO, Bulb, E.ON, Scottish Power and SSE will pay out a total of £10.8 million after missing smart meter installation targets for 2022.

The firms fell short of the installation targets set for 2022, culminating in a shortfall to install a total of 1,026,628 smart meters by the required deadline.

Following action by Ofgem, the companies have agreed to pay a total of £10.8 million into Ofgem’s Energy Industry Voluntary Redress Fund (EIVRF) in respect of them not meeting smart meter installation targets for 2022. The fund is used primarily to help consumers in vulnerable situations most at risk from cold homes and high energy bills.

Smart meters are an important part of the transition to a greener, more flexible energy system.

They also help households by making it easier for them to track their energy usage, as well as access innovative smart tariffs that can save money by encouraging energy use outside of peak times or when there is excess clean electricity available.

Some customers have even been paid to use electricity during very windy days.

As a result of suppliers agreeing to make these voluntary payments by way of Alternative Action, Ofgem has decided not to conduct a full investigation into the reasons for the shortfall against the targets in respect of this matter for 2022.

We would always encourage a business customer to install a smart meter where possible to help with the transition to a future where we need to be smart about the energy we use and the time of the day that we use it.

We are also starting to see that some energy suppliers are now requesting that their customers installs a smart meter as mandatory if a business wants to switch to them.

Please contact us or compare the market online to see which suppliers request smart meter installations.