Households in the UK could soon receive compensation from energy suppliers for problems with smart meters, following new proposals from Ofgem. The energy regulator has outlined plans to introduce rules requiring suppliers to pay out for delays in installations and for meters left in 'dumb' mode, where they lose connectivity or fail to transmit readings automatically.
Under the proposed rules, customers would be eligible for £40 compensation if they wait more than six weeks for a smart meter installation. Additionally, compensation would be due for faulty meters or those not operating in smart mode that are not fixed within 90 days. The measures aim to improve standards and hold suppliers accountable, with enforcement expected from early 2026.
Ofgem's director of retail pricing and systems, Charlotte Friel, stated: 'Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending. But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change.'
Martin Lewis welcomed the proposals, noting that 'likely one in five' smart meters are faulty. He emphasised the need to shift focus from merely installing meters to promptly fixing broken ones, including in-home displays. Micro-businesses would also be eligible for compensation under the new rules.
Minister for energy consumers Miatta Fahnbulleh said: 'Consumers are at the heart of our mission to deliver an energy retail market that works for everyone. That’s why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.' U-switch research found that one in five households with a faulty smart meter had been waiting over two years for a repair.
