The UK’s largest family vitality suppliers are to pay a mixed penalty of virtually £11m for not assembly the business regulator’s 2022 targets for good meter installations.
Ofgem mentioned that British Gas, OVO, Bulb, E.ON, Scottish Power and SSE would hand £10.8m to its Energy Industry Voluntary Redress Fund (EIVRF) – used to assist households struggling to pay their payments.
The watchdog mentioned that, between them, the shortfall in installations stood at a couple of million and that the businesses’ particular person choices to pay a penalty averted the necessity for an investigation.
“Smart meters are an important part of the transition to a greener, more flexible energy system,” Ofgem mentioned in an announcement.
“They also help households by making it easier for them to track their energy usage, as well as access innovative smart tariffs that can save money by encouraging energy use outside of peak times or when there is excess clean electricity available.”
British Gas, the nation’s largest vitality provider by buyer numbers, confronted the biggest penalty – slightly below £3.4m.
OVO’s invoice got here in at £2.4m, whereas Bulb would pay £1.8m, E.ON £1.7m, Scottish Power £1.2m and SSE £252,000.
Ofgem mentioned the penalties mirrored some authentic mitigating components however, up till the tip of June, 33 million good and superior meters had been put in in houses and small companies throughout Great Britain to this point.
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Smart meters are broadly seen as an necessary software in serving to vitality clients handle their use of fuel and electrical energy, particularly in instances of heightened payments.
They hit unprecedented ranges final winter as wholesale prices ramped up within the wake of Russia’s invasion of Ukraine.
The vitality worth cap has fallen again sharply however is at present nonetheless about £1,000 above the pre-pandemic common for annual payments.
Ofgem is because of reveal later this month the worth cap determine masking the primary three months of the yr and forecasts have prompt it should stay slightly below £2,000 however tick up barely.