Ofgem has announced that households with smart meters could be entitled to £40 compensation if they face installation delays or faulty devices. The energy regulator's new rules aim to improve smart meter standards and protect consumers.
Under the proposals, customers will receive £40 if they wait more than six weeks for a smart meter installation. Additionally, if a meter is defective or fails to operate in smart mode and remains unrepaired for 90 days, the same payout applies.
The measures come after widespread issues with smart meters losing connectivity, often referred to as 'dumb mode', where they stop sending automatic readings. Ofgem has mandated the repair or replacement of over 600,000 faulty devices since last July.
Charlotte Friel, Ofgem's director of retail pricing and systems, said: 'Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data. But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs – this needs to change.'
Martin Lewis, founder of Money Saving Expert, welcomed the reforms, noting that broken smart meters were a key issue he raised with the government. He said: 'Far too many smart meters, likely one in five, don't work as they should. We need to shift firms' focus from just installing smart meters to promptly fixing those that are broken.'
The compensation scheme is expected to come into force in early 2026, with suppliers required to improve performance or face payouts.
