E.On fined £7m for meter roll-out failure
Energy company E.ON has been fined £7million by Ofgem for its 'unacceptable' failure to supply enough advanced meters to business customers. The money will go to the Carbon Trust. E.ON faces a sales ban and a further £7million in redress if it fails to attain new targets. Since the Government's advanced meter roll-out scheme for businesses began in 2009, E.ON has only managed to deliver meters to less than 65 per cent of its relevant business customers. The roll-out is part of a national project to modernise the energy sector. Investigations into British Gas and npower’s roll-out are ongoing.

Energy giant E.ON has been fined £7million by Ofgem for its 'unacceptable' failure to supply enough advanced meters to business customers.

The £7million will go to the Carbon Trust and E.ON faces a sales ban and additional £7million in redress if it fails to meet new targets.

Since the Government's advanced meter roll-out scheme for businesses began in 2009, E.ON has only managed to deliver meters to less than 65 per cent of its relevant business customers, Ofgem said.

Fined: Energy giant E.ON has been fined £7million by Ofgem for its 'unacceptable' failure to supply enough advanced meters to business customers

Anthony Pygram, Ofgem senior partner with responsibility for enforcement, said: 'It is unacceptable that E.ON failed to roll out advanced meters to these business customers on time.

'Customers have lost out on receiving better information about their energy consumption and the opportunity to control costs.

'Unless E.ON improves their poor record, they will have to pay out even more and may face a sales ban.

'The roll-out of advanced meters has the potential to transform the energy market. We expect all suppliers to learn the lessons from this ahead of the domestic smart-meter roll-out, in particular the need to start the process in good time and ensure senior managers are committed to delivering on time.'

In a statement on its website, E.ON said: 'Installing advanced meters to tens of thousands of business customers across the country was always going to be a significant challenge and one that threw up a variety of hurdles for suppliers to overcome.

'That said, we cannot, and will not, overlook the fact that we did not do enough in time to meet the deadline and in that regard failed to provide the efficient service our business customers demand and deserve.

'In the last 18 months we have made some further progress and we have invested heavily in increasing our capability and we are taking all reasonable steps to get these meters installed.'

Investigations: Ofgem said: 'Investigations continue into British Gas' and npower's roll-out performance'

E.ON's failure to supply the meters on time meant 7,000 customers did not have a meter when they should have.

According to Ofgem: 'E.ON was unable to demonstrate that it took all reasonable steps to fulfill 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.'

Ofgem said the advanced meter roll-out was 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.

Suppliers who failed to deliver on time are nonetheless still required to roll out advanced meters, the regulator said.

The regulator added: 'Investigations continue into British Gas' and npower's roll-out performance.