SSE Pays Fine for Missing Gas Meter Target
UK energy industry regulator Ofgem has handed SSE Energy Services a £700,000 fine for missing a smart meter installation target. Their target for the installation of gas smart meters in 2018 was only reached in February this year.
Ofgem Monitoring Big Six Supplier Targets
All homes and small businesses should have electricity and gas smart meters installed by the end of 2020. To complete the smart meter rollout, Ofgem requires suppliers with 250,000 customers or more set their own targets for installations. They must take ‘all reasonable steps’ to meet their targets which Ofgem will monitor.
SSE met their target for the installation of electricity smart meters in 2018. However, they missed their target for gas smart meters, hitting it two months behind schedule. In response to the fine, SSE Energy Services declared that the firm remains ‘fully committed’ to the smart meter rollout.
SSE Achieved ‘Many Achievements’ in 2018
SSE’s Director of Metering and Smart Transformation, Chris Adams, said:
“We worked hard during 2018 to successfully transition to the new generation of smart meter, which brings full functionality to customers and installed around 600,000 meters during the year. However, while there were many achievements in 2018, we are disappointed that we fell slightly short on meeting our gas target. We quickly recovered the shortfall during February 2019 and are on target for the year ahead.”
Mr Adams added that SSE are working with Ofgem to resolve the matter as quickly as possible. The company has agreed to make a payment of £700,000 to Ofgem’s Voluntary Redress Fund.
A statement from Ofgem on the matter read:
“SSE has agreed to pay £700,000 to Ofgem’s consumer redress fund administered by the Energy Savings Trust, which supports consumers in vulnerable situations and the development of innovative products or services not currently available to energy consumers. Due to the steps SSE has taken, Ofgem has decided not to take formal enforcement action.”
Purpose of the Voluntary Redress Fund
The Energy Saving Trust is the organisation entrusted by Ofgem with the distribution payments made to the Voluntary Redress Fund. The money comes from energy companies who have breached rules and is distributed to various charities. The money collected can go toward many different things such as domestic energy efficiency. It can also be used to provide advice that helps consumers keep on top of their bills.
The Energy Saving Trust has an open application process for any charities seeking funding from the Voluntary Redress Fund. Successful applicants are selected after advice from an independent panel of experts. Viable locations for funding are all across England, Scotland and Wales.
The fund will be active and available for applications until 2021.
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