OVO agrees to £1.2m fine after SSE’s smart meter failure

OVO Energy has agreed to pay a fine of £1.2m after the failure of its now subsidiary, SSE Energy Services, to hit targets for the installation of gas and electricity smart meters for customers in 2019.

Ovo Energy, which acquired SSE Energy Services in January 2020, will pay out £1.2m for SSE’s historic issue.

In 2019, SSE Energy Services paid £700,000 to the energy redress fund after it failed to meet its smart meter target for gas meters in 2018.

Under the Government’s smart metering implementation programme, suppliers are required by their licence to take all reasonable steps to rollout smart meters to all homes and small businesses by mid-2021.

To work towards this, suppliers set individual annual targets for smart meter installations and Ofgem monitors performance against these targets.

Due to the voluntary payment of £1.2m to Ofgem’s consumer redress fund, Ofgem has decided not to take formal enforcement action.

Ofgem says it is closely monitoring suppliers’ approaches to the rollout of smart meters and will use its discretion to hold suppliers to account if they do not meet their obligations.

Installations of smart meters were paused in March due to the COVID-19 pandemic, although they started back up again in June.

In July, installations jumped 120 per cent compared to the month before, although the number of meters installed was still down 36 per cent from the same month last year.

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