Energy regulator Ofgem has announced that households across the United Kingdom will be eligible for automatic £40 compensation payments when they experience significant delays or failures with smart meter installations, with the new rules coming into effect from February.
New Compensation Rules for Smart Meter Issues
The tougher regulations, which were first proposed in March of last year following a comprehensive review, mandate that energy suppliers must pay £40 directly to customers under specific circumstances. This move aims to improve consumer protection and ensure a smoother rollout of smart meter technology nationwide.
When Compensation Will Be Paid
According to Ofgem, households will automatically receive the £40 payment in three key scenarios:
- When customers have to wait more than six weeks for a scheduled smart meter installation appointment.
- When an installation appointment fails due to a fault that is within the supplier's control.
- When a supplier fails to provide a resolution plan for a reported smart meter issue within five working days.
These guaranteed standards of performance represent a significant strengthening of consumer rights in the energy sector, setting clear expectations for supplier behaviour and accountability.
Background to the Regulatory Changes
Ofgem originally announced plans to review smart meter standards last March, with the goal of improving the overall experience for consumers who choose to adopt the technology. The regulator has emphasised that smart meters offer numerous benefits including accurate billing, access to cheaper tariffs, and real-time energy use tracking.
Melissa Giordano, deputy director of systems and processes at Ofgem, stated: "Smart meters offer customers accurate bills, cheaper tariffs, and real-time energy use tracking. Every customer who wants a smart meter should get one quickly, and it should work from day one. These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong."
Progress on Smart Meter Rollout
The watchdog revealed that more than 900,000 previously non-operating smart meters have been repaired or replaced since 2024, demonstrating ongoing efforts to address technical issues with the technology. Government statistics indicate that over 70% of UK households currently have either a smart meter or advanced meter installed.
These new guaranteed standards are designed to support the continued national rollout of smart meters while ensuring consumers receive adequate protection when installations don't proceed as planned. Ofgem has confirmed it will conduct another review of these standards in early 2027 to ensure they continue meeting consumer needs effectively.
The introduction of automatic compensation represents a significant shift in how energy suppliers will be held accountable for service failures, potentially driving improvements in installation processes and customer service across the industry.
