You are here: Home - Household Bills - News -

Five energy firms banned from taking on new customers

0
Written by:
06/03/2020
Five energy suppliers have been banned from taking on new customers for breaching smart meter rules.

The ban lasts until the providers – Daligas, Enstroga, Entice Energy Supply, Euston Energy (trading as Northumbria Energy), and Symbio Energy – become compliant.

The issue relates to the suppliers failing to sign up to a communications system bridging the technology gap between the older SMETS1 smart meter and the newer, next generation SMETS2 smart meters.

By not being part of the scheme, it means smart meters lose their functionality when customers switch from compliant firms to the non-compliant ones.

As such, customers will have to provide manual meter readings.

Energy regulator, Ofgem said this causes “consumer detriment and could undermine consumer confidence in the smart meter programme and the switching process”.

Earlier this year, Ofgem warned nine energy suppliers they could have their licences stripped if they failed to become Data Communications Company (DCC) users.

Three of the suppliers (Ampower, Green Supplier Limited, UK National Gas Ltd) have since become compliant.

Better Energy Limited has not been issued with a final order as it no longer has any domestic customers. Its licence will be revoked later this month.

But the five suppliers named above have still failed to become DCC users and will now be banned from taking on any new customers until they become compliant.

Ofgem said it will consider further enforcement action, which could result in their licences being revoked.

‘Hefty punishment’

Will Owen, energy expert at Uswitch.com, said: “These five energy companies might not be household names, accounting for fewer than 100,000 households between them. But the smart meter network won’t work properly until every supplier is using the same communications infrastructure.

“All suppliers were meant to be enrolled in the DCC smart meter infrastructure by November 2017.

“Banning a supplier from taking on more customers is a hefty punishment, and could seriously damage their growth plans.

“These companies could face further punishments, and potentially lose their licences if they don’t resolve this situation soon.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Traders warned not to rip-off consumers amid coronavirus outbreak

The competition regulator is warning traders not to exploit the current situation over coronavirus.

Close