To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of ensuring that fines levied on energy companies for failing to meet their smart meter roll-out targets are not passed on to consumers through higher bills; and if he will make a statement.
Answered on
12 March 2018
Energy suppliers’ licence conditions require them to take ‘all reasonable steps’ to roll-out smart meters to all their domestic and small business customers by 31 December 2020. Ofgem is responsible for regulating energy suppliers against this obligation.
Ofgem will make decisions on whether to take action against energy suppliers that do not comply with their smart meter obligations in line with their Enforcement Guidelines. This is consistent with the approach taken on any other regulatory breaches by energy suppliers. A number of factors are taken into account including customer detriment. Ofgem’s Enforcement Guidelines are available here: https://www.ofgem.gov.uk/publications-and-updates/enforcement-guidelines