Centrica will have to replace many of the 400,000 smart meters it has installed in UK households as they did not comply with the Government guidelines.
The firm will now have to pay to replace the older meters but declined to reveal how many would need to be changed or at what cost.
The UK government plans to equip smart meters requiring energy suppliers to fit 53 million units at an investment of $18.3bn, reports Reuters.
Smart meters now being installed meet the criteria, and the non-compliant older ones will only need to be replaced by 21 December 2019.
The government published additional guidelines for the roll-out of smart meters, including setting criteria on which technologies can be used.