Ofgem cracks down on five smart meter operators
Energy watchdog Ofgem has banned five suppliers from taking on new customers until they become compliant with smart meter regulations, it said today.
The regulator has told the five companies that until they become Data Communications Company (DCC) users, they will be banned from supplying any new customers.
The DCC is responsible for the national infrastructure that enables communications between smart meters, all energy suppliers and network companies.
All suppliers were required to become DCC users from 25 November 2017.
The five suppliers are Daligas, Enstroga, Entice Energy Supply, Euston Energy (trading as Northumbria Energy), and Symbio Energy.
Euston Energy chief executive Oliver Friedrich said: “We regret the decision taken by Ofgem but can confirm that we have initiated all routes to full compliance as requested and are confident we will meet the given deadline.”
In January, Ofgem consulted on issuing nine suppliers with a final order, giving them a deadline of 31 March to comply and become DCC users.
Three of these suppliers (Ampower, Green Supplier, UK National Gas) have since become compliant and will not be issued with final orders, the watchdog said.
Better Energy was not issued a final order as it no longer has any domestic customers and has requested the revocation of its supply licences, which will happen on 20 March, Ofgem 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,” Will Owen, energy expert at Uswitch.com said.
”Banning a supplier from taking on more customers is a hefty punishment, and could seriously damage their growth plans.”
Suppliers are required to take all reasonable steps to roll out smart meters to all their domestic and small business customers by the end of 2020. The Business, Energy and Industrial Strategy department has recently consulted on proposals to develop a policy framework for energy suppliers to continue installing smart meters post-2020 and will publish their decision in due course.
Until these five suppliers are DCC users, customers with a DCC-connected smart meter who switch to any of the five suppliers will lose the functionality of their smart meter on switching.
This leaves the meters operating as traditional meters with customers needing to provide manual meter readings.
“This causes consumer detriment and could undermine consumer confidence in the smart meter programme and the switching process,” Ofgem said.
If these suppliers continue to fail to become DCC users in accordance with the final orders, Ofgem said it will consider further enforcement action, which could result in their licences being revoked.
Daligas, Enstroga, Entice Energy Supply and Symbio Energy were contacted for comment.