Ofgem has issued final orders to five suppliers, banning them from taking on new customers until they become Data Communications Company (DCC) users.
The DCC is responsible for the national infrastructure that enables communications between smart meters, all energy suppliers and network companies.
The five suppliers are Daligas Limited, Enstroga Ltd, Entice Energy Supply Limited, Euston Energy Ltd (trading as Northumbria Energy), and Symbio Energy Limited.
All suppliers were required to become DCC users from November 25, 2017 to enable the enrolment of first-generation smart meters and drive the installation of the next generation.
Until these five suppliers become DCC users, customers with a DCC-connected smart meter who switch to any of the five suppliers will lose the functionality of their smart meter on switching. This leaves meters operating as traditional meters with customers needing to provide manual meter readings.
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.
If these suppliers continue to fail to become DCC users in accordance with the final orders, Ofgem said that it will consider further enforcement action, which could result in their licences being revoked.