A watchdog has fined power retailer and generator E.ON £7mln for missing UK targets to roll out advanced electricity meters.
Regulator Ofgem said E.ON had failed to supply relevant business customers via advanced electricity meters by the April 2014 deadline.
It said the company, one of Britain's "big six" energy providers, had delivered advanced meters to less than 65% of its relevant electricity business customers by an April 2014 deadline.
E.ON has agreed to pay £7mln now to the Carbon Trust and to pay a further £7mln penalty if it fails to meet a new interim target.
The roll-out is part of a national project to modernise the energy sector and provide better service by introducing next-generation, smarter meters to help customers control their usage and bills.
The UK as a whole is behind other countries such as Italy in rolling out smart meters, which enable utilities to remotely gather data and avoid sending customers estimated bills.
Ofgem said E.ON only completed 64.4% of its roll-out, meaning more than 7,000 customers did not get a meter on time.
E.ON was unable to demonstrate that it took all reasonable steps to fulfil its required meter roll-out.
The supplier failed to plan and monitor its roll-out and its senior management didn’t do enough to ensure it complied.
E.ON has also gained financially by avoiding the costs of installing and operating the new meters.
If E.ON still does not comply with its obligations after a further six months, Ofgem said it would consider imposing a sales ban to stop it taking on new business customers until it is able to supply them through an advanced meter.
Anthony Pygram, Ofgem senior partner with responsibility for enforcement said: “It’s unacceptable 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. Unless E.ON improves their poor record, they will have to pay out even more and may face a sales ban."
The regulator said it was continuing investigations into the progress of Centrica's (LON:CNA) British Gas and RWE's Npower in rolling out new meters.
E.ON's shares shrugged off the fine and were marginally higher on the XETRA trading network.