Ofgem found that EDF failed to meet its annual installations target for 2017, although it was achieved almost a month after the deadline in January this year.
Suppliers are required by law to take “all reasonable steps” to deliver smart meters to all homes and small businesses by the end of 2020.
They set annual targets and Ofgem monitors their achievement, although the target remains commercially confidential.
The energy regulator said it is “closely monitoring suppliers’ approach to the roll-out of smart meters and will hold suppliers to account if they do not meet their obligations”.
Jim Poole, director of customer operations at EDF Energy said: “EDF Energy is working hard to meet its smart meter programme objectives, delivering the benefits of smart meters to our customers, and we are disappointed that we were three weeks late in reaching our 2017 target.
“During 2017 we doubled our smart meter installation rates and employed more people to install smart meters.
“We recovered the shortfall quickly in 2018 and are on target for this year.”
The money will be paid into Ofgem’s consumer redress fund, which supports consumers in vulnerable situations and the development of innovative products or services not currently available.
This means Ofgem has decided not to take formal enforcement action against EDF.
Victoria MacGregor, director of energy at Citizens Advice, said: “Smart meters have the potential to deliver major benefits to consumers, through reduced bills and more efficient energy use.
“It’s consumers who miss out when suppliers don’t hit their targets and fail to get meters up on walls.
“It’s only right that suppliers should pay a price when this happens.”
Around 11 million smart meters in total were installed in Britain by all the energy suppliers as of March.