Ovo Energy is to pay out £1.2 million after SSE Energy Services, which it acquired in January this year, missed its target to install gas and electricity smart meters for customers in 2019.
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.
Suppliers set individual annual targets for smart meter installations and Ofgem monitors performance against these targets.
SSE Energy Services failed to meet its smart meter installation target for 2019, before it was acquired by Ovo Energy in 2020.
Due to the voluntary payment of £1.2 million to Ofgem’s consumer redress fund which towards supporting customers in vulnerable situations, Ofgem has decided not to take formal enforcement action.
SSE Energy Services managing director Tony Keeling said: "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," Keeling said.
"Ovo Energy has consistently met and exceeded all of its smart meter targets, with over half of its customers currently benefiting from the technology."