In a post to the SaskPower website, Robert Watson admits the smart meters did not meet the expectations of its customers.
He also goes on to say that despite assurances from both the smart meter supplier and independent industry experts, the smart meters clearly did not meet the standards of SaskPower.
After eight fires, the province ordered SaskPower to replace all 105,000 installed smart meters.
Watson stated in his apology the replacement, which the province pegs at $15 million, started across Saskatchewan on Tuesday.
Watson also said the expensive replacement of smart meters will not impact rates and they will work within their budget to correct the issue.
The North Carolina-based company that manufactures the electricity meters has defended its equipment.
Sensus says lab tests indicate some of the fires were caused by holes in the meter boxes that allowed water in, or by power surges.
Saskatchewan Premier Brad Wall has said the government will go after Census for a portion of the cost of replacing the meters.
A smart meter records consumption of energy in small intervals and can relay the information electronically to a utilities company. It eliminates the need to estimate bills when a meter reader can't do an on-site check.