Five energy suppliers banned from taking on new customers
Energy watchdog Ofgem could revoke the licenses of five suppliers if they continue to breach smart meter…
6th March 2020 15:05
by Brean Horne from interactive investor
Energy watchdog Ofgem could revoke the licenses of five suppliers if they continue to breach smart meter rules
Five energy suppliers have been banned from taking on new customers after breaching smart meter rules, the energy watchdog Ofgem has ordered.
The providers include Daligus Limited, Enstroga Ltd, Entice Energy Supply Limites, Euston Energy Ltd (currently trading as Northumbria Energy) and Symbio Energy Limited.
All five companies failed to sign up to a common smart meter system called the Data Communications Company (DCC).
The DCC enables communication between smart meters, all energy suppliers and network companies.
Ofgem required all energy suppliers to become DCC users from 25 November 2017 to launch the first generation of smart meters (SMETS1) and drive the installation of the next generation of smart meters (SMETS2).
Suppliers that do not sign up to DCC cannot install second generation smart meters for their customers.
Customers switching from a DCC-connected smart meter to any of the five companies named will lose functionality of their smart meter.
As a result, they will have to enter their meter readings manually.
Ofgem says that this "causes consumer detriment" and could undermine customers' confidence in the smart meter programme and the switching process.
In January this year, Ofgem warned nine energy providers that they could have their licences taken away if they failed to become DCC users.
Three of the suppliers; Ampower, Green Supplier Limited and UK National Gas Ltd have now become compliant.
One supplier, Better Energy Limited no longer has any domestic customers, as a result it was not issued with a final order and its licence will be revoked on 20 March 2020.
The five remaining suppliers will be banned from taking on new customers unless they become DCC users by 31 March 2020.
Ofgem warns that it "will consider further enforcement action, which could result in their licences being revoked" if the providers fail to comply by the deadline.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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