Ofgem fines E.ON for missing UK government’s smart meter target

Ofgem fines EON
UK energy regulator Ofgem has fined E.ON for failing to meet a smart meter deployment target issued by the government in 2009

In the UK, energy regulator Ofgem has this week ordered energy supplier E.ON to pay a fine of GBP7 million for failing to meet a deployment target of 20,000 smart meters to its business customers by Q2 of 2014.

The decision for E.ON to pay the fine comes after Ofgem found the energy provider installed 13,000 of the 20,000 smart meters it was mandated to install by the government, according to BBC News.

In 2009, the government ordered energy companies to supply 20,000 smart meters monitoring electricity and gas consumption more efficiently to their business customers in a period of five years.

The government also expects energy suppliers to fit more than 26 million households across England, Wales and Scotland with smart meters by 2020.

E.On has agreed to pay GBP7 million to the Carbon Trust for missing the deadline.

It has a year to meet a new interim target and could pay a further GBP7 million if it fails to do so, Metering & Smart Energy International has learnt.

‘Missing out on smart meter benefits’ – Ofgem

Commenting on the issuing of the fine, Anthony Pygram, senior enforcement partner at Ofgem, said: “It’s unacceptable that E.On failed to roll out advanced meters to these business customers on time.

“Customers have lost out on receiving better information about their energy consumption and the opportunity to control costs.”

A spokesman for E.On said: “Installing advanced meters to tens of thousands of business customers across the country was always going to be a significant challenge and one that threw up a variety of hurdles for suppliers to overcome.

“That said, we cannot, and will not, overlook the fact that we did not do enough in time to meet the deadline and in that regard failed to provide the efficient service our business customers demand and deserve.”

The news comes as Ofgem is also investigating the roll-out performance of British Gas and Npower.