LONDON: UK Energy regulator Ofgem is consulting on issuing Utilita Energy Limited with a final order compelling the supplier to install SMETS2 (Smart Metering Equipment Technical Specification) meters for new and replacement meters in line with its licence obligations, or be banned from taking on new customers.
SMETS2 are the latest generation of smart meters. The first generation (SMETS1) meters may lose their smart functionality when customers switch supplier. This could result in inaccurate bills, as manual reads could be needed, and risks confusing customers as their In-Home Display could show old tariff information.
Utilita has continued to install SMETS1 meters at volume despite the introduction of the ‘New and Replacement Obligation’ (NRO), where suppliers must take all reasonable steps to install a SMETS2 meter at any new or replacement installation of a meter, from 30 June 2019.
By continuing to install SMETS1 meters in large numbers, Utilita is also increasing the number of SMETS1 meters that will need to be enrolled into the Data Communications Company (DCC). The DCC is responsible for the national infrastructure that enables communications between smart meters, energy suppliers and network companies.
If the final order is made, Utilita will have to install 250 SMETS2 meters by 30 April 2021 and install 15,000 SMETS2 meters by 31 July 2021, in line with the plan that they have provided to Ofgem.
If Utilita fails to meet each SMETS2 smart meter installation target by the deadlines, it will be banned from taking on new customers or upgrading current customers to dual fuel until it has met each installation target.
Charles Hargreaves, Ofgem’s Deputy Director of Conduct and Enforcement, said: “Smart meters are vital for upgrading Great Britain’s energy infrastructure, enabling customers to be better informed and engaged in managing their energy consumption by providing them with real time information on their energy use.
“Smart meters also help enable the transition to a more flexible energy market and the move to a low carbon economy.
“Ensuring all energy suppliers take all reasonable steps to install SMETS2 meters for new and replacement meters is critical to the success of the smart meter rollout as it enables smart meters to operate reliably for all consumers regardless of their energy supplier.”
If Utilita fails to install SMETS2 smart meters when it should do so, Ofgem could take further enforcement action.
Ofgem is closely monitoring all 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.
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