Eon Energy to pay £7 million for failing to supply advanced meters

Ofgem has today secured £7 million from E.ON as the supplier failed in its duty to supply relevant business customers through advanced electricity meters by the April 2014 deadline. The roll-out is part of a national project to modernise the energy sector and provide better service by introducing next-generation, smarter meters to help customers control their usage and bills.

The government’s advanced meter roll-out scheme for businesses began in 2009. Under this, E.ON had five years to fit around 20,000 customers with, and supply electricity through advanced meters. E.ON only completed 64.4% of its roll-out, meaning over 7,000 customers did not get a meter on time. E.ON was unable to demonstrate that it took all reasonable steps to fulfil its required meter rollout. The supplier failed to plan and monitor its roll-out and its senior management didn’t do enough to ensure it complied. E.ON has also gained financially by avoiding the costs of installing and operating the new meters.

Suppliers who failed to deliver on time are nonetheless still required to roll out advanced meters. Since April 2014, E.ON has made some further progress. However, the supplier has accepted it needs to do more and has agreed that unless it meets an interim target within the next year, it will pay a further £7 million in redress. If E.ON is still not compliant with its obligations after a further six months, we are ready to consider imposing a sales ban preventing them from taking on new business customers until it is able to supply them through an advanced meter.

Source: Ofgem https://www.ofgem.gov.uk/publications-and-updates/e-pay-7-million-failing-supply-advanced-meters