E.ON apologises for missing business electricity meter change deadline

By AndrewBarrow

  • Settlement agreed with Ofgem. £7m
    redress payment to fund small and medium business energy efficiency campaign

E.ON has today (MON) apologised to customers for failing to
meet its obligation to install advanced electricity meters to business
customers. The company has agreed to provide a £7 million payment to fund a
two-year programme of energy saving help for small and medium businesses, to be
delivered by the Carbon Trust, by way of settlement.

The settlement follows the conclusion of an investigation by
the energy regulator Ofgem into the installation of advanced electricity meters
to business customers, which found that E.ON had not taken all reasonable steps
to provide advanced metering technology to about 7,000 business customers by
the April 2014 deadline.

Under the Government’s advanced meter roll-out scheme1 which
began in 2009, energy suppliers across the UK had to take all reasonable steps
to fit a total of 155,000 business customers with, and supply electricity
through, advanced electricity meters by April 2014.

E.ON had installed more than 12,000 advanced electricity
meters – or almost two-thirds of its total figure – by the April 2014 deadline
but Ofgem has ruled that the company failed to take all reasonable steps to
manage the installation process for all 20,000 meter installations within the

A spokesman for 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

“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. “

The £7 million redress payment will be used to fund a
two-year programme of free energy efficiency advice and support for small and
medium businesses across England, Scotland and Wales to be delivered by the
Carbon Trust.

This will include energy audits for more energy intensive
SMEs, energy efficiency training events to support groups of smaller and
locally clustered businesses as well as support signposting participating
organisations in order to help businesses implement cost effective energy
saving opportunities. It will also deliver the installation of energy
efficiency measures to help SMEs across Great Britain save energy.

Customers with advanced meters can potentially benefit from
better and more detailed information about their energy use and how to better
manage their consumption. The findings make clear there was no deliberate
attempt to avoid completing the obligation but E.ON accepts that there were
failings in its management systems which made the task all the more difficult.


1 Advanced meter rollout
In April 2009, the Government introduced a new licence
condition requiring suppliers to roll-out advanced gas and electricity meters
to their larger non-domestic customers by 6 April 2014.
The advanced meter obligation requires that all larger
non-domestic premises be supplied by advanced meters unless the supplier was
unable to complete installation, despite taking all reasonable steps to do so.

For more information contact:

Andrew Barrow on 02476 183
677 or andrew.barrow@eon-uk.com
Scott Somerville on 07889 771 804 or scott.somerville@eon-uk.com

information (including any forecasts or projections) contained in this press
release (the “Information”) reflects the views and opinions of E.ON
on the date of this press release. The Information is intended as a guide only
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