New regulations effective from February 23 require energy suppliers to automatically pay £40 to households with smart meters that experience certain issues. The rules aim to improve service and ensure smart meters function correctly.
The compensation applies to three categories: delays of over six weeks for new or first-time installations, problems within the supplier's control such as lack of qualified engineers or equipment, and failure to provide a resolution plan. Ofgem is also considering adding a fourth category for smart meters operating in 'dumb' mode, which fail to transmit readings.
Melissa Giordano, deputy director at Ofgem, said: “Smart meters offer customers accurate bills, cheaper tariffs, and real-time energy use tracking. These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong.”
Suppliers must issue the £40 payment within 10 working days, either as credit to the energy account or direct bank transfer. If payment is delayed beyond 10 days, an additional £40 may be due, though only once per incident.
The rule on 'dumb' meters is still under review, with Ofgem intending to implement it later this year, pending the Government's response to its smart meter performance review.
