AMSTERDAM: Energy firm E.ON has been told to pay £7m after missing a target for delivering advanced electricity meters to business customers.
The regulator Ofgem warned that the company faces further action including an additional £7m payout and a possible sales ban if it failed to improve its “poor record” – and said rivals should take heed.
The regulator said German-owned E.ON had been set a target in 2009 to fit around 20,000 business customers with, and supply them through, the meters.
But it only completed 64.4% of its roll-out, missing its 65% target and meaning 7,000 customers did not receive a meter on time.
Ofgem said the roll-out was part of a national project to modernise the energy sector and provide better service by introducing smarter meters to help customers control their bills.
Executives at the company came under fire as the regulator said E.ON was “unable to demonstrate that it took all reasonable steps to fulfil its required meter rollout”.
It said: “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 E.ON had made further progress since missing the deadline in April 2014 but accepted it had more to do.
E.ON’s £7m payment will go to the Carbon Trust to fund energy-saving audits and advice.
Anthony Pygram, from Ofgem, said: “It’s unacceptable that E.ON failed to roll out advanced meters to these business customers on time.”
Ofgem said investigations continued into the performances of British Gas and npower in rolling out advanced meters.
