Smart meter transition and the Data Communications Company (DCC)

In January 2022 a new 4-year smart meter rollout obligation began which suppliers must comply with. The obligation will run until the end of 2025, and it ensures suppliers are subject to binding annual installation targets.

First Year

The first year of the new obligation ended on 31 December 2022 with several suppliers failing to achieve their smart meter installation targets for 2022, in line with their licence obligations. According to suppliers’ end of year reporting for 2022, of a total of 49 suppliers covered by the targets framework, 31 suppliers failed to achieve their electricity targets and 23 suppliers failed to achieve their gas targets.

In line with our Enforcement Guidelines, Ofgem took enforcement action against British Gas, OVO, Bulb, E.ON, Scottish Power and SSE after they fell short of the installation targets set for 2022, culminating in a shortfall to install a total of 1,026,628 smart meters by the required deadline. In lieu of this, the firms agreed to pay out a total of £10.8 million into Ofgem’s Energy Industry Voluntary Redress Fund.

Second Year

As the second year of the new obligation has now ended, we are aware that some suppliers appear to have failed to achieve their 2023 smart meter installation targets in line with their licence obligations. Ofgem will consider whether to take enforcement action in respect of any supplier which appears to have breached its licence conditions, in line with our Enforcement Guidelines.

Should Ofgem decide to take enforcement action, further details will be published on our website.

Suppliers must publish their annual targets and their performance against these targets on their websites. The links to suppliers' annual targets and performance against them can be found in the dropdown lists below.