Ofgem has banned five suppliers from taking on new customers until they become Data Communications Company (DCC) users.

Daligas, Enstroga, Entice Energy Supply, Euston Energy (trading as Northumbria Energy) and Symbio Energy could have their licences revoked if they fail to join DCC, Ofgem said. Until they join, customers with a DCC-connected smart meter who switch to them will lose the functionality of their smart meter. This causes consumer detriment and could undermine consumer confidence in the smart meter programme and the switching process.

Ofgem told nine suppliers that they must become DCC users by 31 March 2020. Ampower, Green Supplier and UK National Gas have since joined, while Better Energy will revoce its supply licences on 20 March.

Will Owen, energy expert at Uswitch, said “These five energy companies might not be household names – accounting for fewer than 100,000 households between them – but the smart meter network won’t work properly until every supplier is using the same communications infrastructure.

“Daligas, Enstroga, Entice Energy Supply, Euston Energy, and Symbio Energy can’t say they haven’t had any warning, as all suppliers were meant to be enrolled in the DCC smart meter infrastructure by November 2017. Banning a supplier from taking on more customers is a hefty punishment, and could seriously damage their growth plans.”

 Suppliers are required to take all reasonable steps to roll out smart meters to all their domestic and small business customers by the end of 2020.