OVO Energy pays out £1.2 million to Ofgem for smart meter installation failures

Costly smart meter failures

Energy suppliers are required by their licence to take all possible measures to install smart meters into their customers homes and small businesses by the middle of 2021.

According to Ofgem, SSE Energy Services failed to hit its installation targets prior to being bout by OVO. SSE had to pay out £700,000 last year into the consumer redress for similar failures last year.

At the start of 2020, Ofgem warned nine energy supply companies that it would strip them of their licences if they failed to join the DCC scheme.

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No enforcement action

After OVO voluntarily paid up to the consumer redress fund, Ofgem said it would not be taking any formal enforcement action.

Tony Keeling, managing director of SSE Energy Services, said: “Today’s news relates to the reporting year of 2019, pre-dating Ovo Energy’s ownership of SSE Energy Services, which it acquired in 2020.

“Since Ovo’s acquisition of SSE Energy Services, we have significantly improved our smart meter rollout programme, to ensure that we can install smart meters in more homes across the UK – a crucial part of our Plan Zero strategy and the transition to net-zero.

“Ovo Energy has consistently met and exceeded all of its smart meter targets, with over half of its customers currently benefiting from the technology.”

Energy Supply Licence requirement

All energy suppliers are required to become Data Communications Company (DCC) users and must take all possible steps to encourage their small business and domestic customers to have smart meters installed.

Several energy suppliers have been hit by large fines for their failures to comply with the rule.

To work towards this, suppliers set individual annual targets for smart meter installations and Ofgem monitors performance against these targets.

Smart Meter Rollout issues

The smart meter rollout has been hit with a multitude of problems since its introduction and has most recently suffered setbacks due to the Covid-19 lockdown proving a major hurdle for suppliers to hit their installation targets due to social distancing rules.

In June, the government let energy supply companies off of their 2020 smart meter targets due to the challenges introduced by the pandemic and has pushed its target of 100% coverage back to 2025. A deadline that some suppliers still believe is unrealistic.

With Dyball Associates expert consultancy service, new entrants to the electricity market find their way through the red tape and onto an effective, compliant energy supply business.

Further Reading

Half of Energy Suppliers have failed to hit Smart Meter Installation Targets

Government announces plans to increase the speed of Smart meter rollout

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