Suppliers are required to take all reasonable steps to roll out electricity and gas smart meters to all homes and businesses by the end of 2020.
To ensure the target is met, large energy suppliers with more than 250,000 customers must set individual goals which are monitored by Ofgem.
While SSE met its smart meter installation target for electricity meters in 2018, it missed its target for gas, which was only met in February 2019.
The Big Six supplier has therefore agreed to pay £700,000 to Ofgem’s consumer redress fund – administered by the Energy Saving Trust – which supports vulnerable consumers as well as the development of innovative products and services.
The regulator has decided not to take any formal enforcement action due to the steps taken by SSE.
SSE Energy Services said it is “fully committed” to the smart meter rollout and to delivering the benefits for consumers.
Chris Adams, Director of Metering and Smart Transformation added: “We worked hard during 2018 to successfully transition to the new generation of smart meter, which brings full functionality to customers and installed around 600,000 meters during the year. however, while there were many achievements in 2018, we are disappointed that we fell slightly short on meeting our gas target.
“We quickly recovered the shortfall during February 2019 and are on target for the year ahead. We have worked with Ofgem to resolve this matter as quickly as possible and have agreed to make a payment to Ofgem’s Voluntary Redress Fund.”