Energy regulator Ofgem has officially confirmed a significant rule change that will take effect within days, introducing automatic compensation for customers facing smart meter installation problems.
Automatic £40 Payments for Delays and Failures
The regulator announced on Friday that households experiencing delays or botched smart meter installations will be entitled to £40 compensation starting next month. This move follows plans first unveiled last March, designed to enhance the customer experience and protect consumers.
When Compensation Applies
Under the new framework, customers will automatically receive £40 in compensation in three specific scenarios:
- When they are forced to wait beyond six weeks for a smart meter appointment
- When an installation fails due to issues within the supplier's control
- When a supplier doesn't provide a resolution plan for a reported problem within five working days
These stricter regulations represent a significant shift toward holding energy suppliers more accountable for service delivery.
Clear Expectations for Energy Suppliers
Melissa Giordano, deputy director of systems and processes at Ofgem, emphasised the importance of these changes: "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."
She added: "These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong."
Industry Response and Progress
A spokesperson from Smart Energy GB commented on the developments: "Considerable progress has been made in improving people's experience of smart meters, with more than nine in 10 now operating in smart mode and the latest data showing 85% of people are happy with their smart meter."
The spokesperson continued: "The latest Citizens Advice-Ofgem Consumer Satisfaction Survey shows consumer satisfaction with smart meters increasing for the fourth successive wave over the past two years."
Enhancing Consumer Confidence
The Smart Energy GB representative further explained: "It's important that people have a positive experience of smart meters. The new measures announced by Ofgem should provide further reassurance for households and businesses about the installation process and resolution of any issues, so they can fully benefit from their smart meter."
This includes greater control over energy use and access to flexible tariffs that can help save money, making the compensation scheme part of broader efforts to improve energy management for UK consumers.
