You are here: Home - Household Bills - News -

Ovo picks up £1.2m tab over SSE Energy failed smart meter targets

0
Written by:
21/08/2020
Ovo Energy which bought SSE Energy at the start of the year is to pay £1.2m after the supplier failed to meet the government’s smart meter targets.

SSE Energy Services failed to meet its smart meter installation target for 2019, before it was bought by Ovo Energy in January 2020.

As a result, it is to make a voluntary payment of £1.2m into energy regulator Ofgem’s consumer redress fund.

Following this, Ofgem said it has decided not to take formal enforcement action.

However, it is closely monitoring suppliers’ approaches to the rollout of smart meters, warning that it will hold suppliers to account if they don’t meet their obligations.

Larger suppliers (those with more than 250,000 customers) had to set annual targets for the proportion of their customers who would have smart meters by the end of each year.

But due to the coronavirus pandemic, in June, the government announced that the current rollout targets would be extended until 30 June 2021 and a new obligation would start on 1 July 2021, continuing until mid-2025.

Richard Neudegg, head of regulation at comparison site, Uswitch.com, said the UK’s smart meter rollout has had a bumpy ride, but even before lockdown stopped installations it was clear the 2020 target was not going to be met.

He said: “This £1.2m payment comes after SSE paid out £700,000 last year for missing its gas smart meter targets in 2018.

“Smart meters prevent the need for meter readings and provide far more accurate bills, opening up the potential for more innovative services. However, only 31% of homes currently have a functioning smart meter, which the government claims helps 80% of users to save money.

“If you want a smart meter installed now you will see some big changes to the process to keep you and the engineer safe. Companies have developed ‘no contact’ installations, which may need you to be in a different room to the engineer. Advice will be offered over the phone rather than face-to-face, and engineers will wear protective clothing and masks.”

Tony Keeling, managing director, SSE Energy Services, said: “Today’s news relates to the reporting year of 2019, predating OVO Energy’s ownership of SSE Energy Services, which it acquired in 2020.

“Since OVO’s acquisition of SSE Energy Services, we have significantly improved our smart meter rollout programme, to ensure that we can install smart meters in more homes across the UK – a crucial part of our Plan Zero strategy and the transition to net zero.

“OVO Energy has consistently met and exceeded all of its smart meter targets, with over half of its customers currently benefiting from the technology.”

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.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week