U.K. Energy Suppliers Fined £10.8 Million for Missing Smart-Meter Targets

Six major U.K. energy suppliers, including British Gas, OVO, Bulb, E.ON, Scottish Power (owned by Iberdrola), and SSE, have been fined a combined total of £10.8 million ($13.3 million) for failing to meet smart-meter installation targets in 2022, according to the U.K. energy regulator, Ofgem.

Ofgem revealed that these companies fell short of their installation targets, resulting in a failure to install a total of 1.0 million smart meters within the required deadline.

Among the fined suppliers, British Gas, owned by Centrica, will contribute the largest sum of £3.4 million to the Energy Industry Voluntary Redress Fund. OVO and Bulb will pay £2.4 million and £1.8 million respectively into the fund. The primary purpose of this fund is to provide assistance to consumers in vulnerable situations who are most at risk from cold homes and high energy bills.

As a consequence of the suppliers agreeing to make voluntary payments, Ofgem will not conduct a full investigation into the reasons behind the installation shortfall. Ofgem acknowledged that some suppliers offered information regarding mitigating factors, which influenced the levels of the agreed payments.

The companies have not responded to immediate requests for comment.

As of June 2023, over 33 million smart and advanced meters have been installed in homes and small businesses in Great Britain, accounting for 58% of all meters in the U.K.