Ovo pays out £1.2m over SSE’s missed smart meter targets
Ovo Energy has paid £1.2m to the industry regulator after SSE Energy Services, which it acquired in January, missed smart meter installation targets.
Energy suppliers are required to meet annual targets to install gas and electricity smart meters, as the government aims to roll out the technology to all homes and small businesses by the middle of next year.
SSE missed last year’s target before it was acquired by Ovo, forcing its new owner to shell out £1.2m.
SSE also failed to reach its smart meter targets in 2018 and was ordered to pay £700,000.
Ofgem will not take any formal enforcement action against the firm following the payment to its consumer redress fund.
“Ofgem 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,” the regulator said as it announced the Ovo fine this morning.
The government has extended the current rollout obligation until 30 June next year due to the disruption caused by the coronavirus pandemic.
A new rollout period will begin on 1 July 2021, with the installation drive continuing until mid-2025.
SSE managing director Tony Keeling 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.”