BG Group plc (LSE:BG.), SSE PLC (LSE:SSE), OVO, Bulb, E.ON and Scottish Power have been charged £10.8 million in penalties by the energy regulator for missing smart meter installation targets for 2022.
UK regulator Ofgem said the companies fell short of the installation targets set for 2022, with the shortfall amounting to 1,026,628 smart meters that were meant to be installed by last year’s deadline.
The companies have agreed to pay the combined charges into Ofgem’s energy industry voluntary redress fund, which is designed to help consumers most at risk from cold homes and high energy bills.
British Gas has agreed to pay the largest fine of £3.37 million, followed by OVO which will pay £2.39 million, Bulb with £1.83 million, E.ON with £1.72 million, Scottish Power's £1.24 million, and SSE with the smallest fine of £252,000.
The UK government introduced a four-year smart meter adoption framework in January 2022 to ensure timely delivery of smart meter installations.
Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem, said: “The installation of smart meters is a vital step in the modernisation of our energy system and the path to net zero by 2050. Smart meters give customers better information about their energy usage helping them budget and control their costs.”