Energy customers will soon get automatic cash compensation when smart meter installs drag on or repairs stall as Ofgem tightens service standards from February.
Under new rules customers will receive £40 if they wait more than six weeks for an installation if an appointment fails due to a supplier fault, or if a reported smart meter problem is not met with a resolution plan within five working days.
For households this turns frustration into money back with no need to chase complaints or argue fault, as payments must be made automatically when standards are missed.
The changes extend Ofgem’s Guaranteed Standards of Performance to cover smart meters closing a long standing gap between rollout ambition and day to day customer experience.
Smart meters are now in more than 70% of homes across Britain and more than 90% are working correctly, yet millions of customers have faced delays failed visits or meters stuck in dumb mode.
Ofgem says tougher rules are needed to force suppliers to prioritise fixes rather than park problems indefinitely.
Since 2024 the regulator’s compliance work has already pushed suppliers to repair or replace more than 900,000 non operating smart meters and it expects that figure to rise as compensation risk sharpens behaviour.
Melissa Giordano, Deputy Director of Systems and Processes at Ofgem, said: “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.”
For customers the message is simple. Long waits broken visits and silence after reporting faults will now cost suppliers real money creating a direct incentive to fix issues fast.
Automatic compensation already applies when suppliers miss appointments mishandle meter faults or delay switching and smart meters are now fully pulled into that framework.
Ofgem is also lining up a tougher second phase. Further work is under way on compensation when smart meters remain stuck outside smart mode for more than 90 days with implementation targeted later this year.
Government is running in parallel consulting on a requirement for suppliers to fix faulty smart meters as soon as possible and within a hard 90 day backstop.
For households juggling bills accuracy and tariff access the shift matters. Smart meters unlock accurate billing cheaper deals and real time energy use data but only when they work properly.
Ofgem will review the new standards in early 2027 but from February customers no longer have to absorb supplier failure for free.
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