- Waiting more than six weeks could lead to a cash payout
Energy customers will be entitled to compensation if their smart meter is not installed quickly enough, the energy watchdog has announced.
Ofgem said new smart meter rules mean that customers will automatically receive a £40 payment from their energy provider if they have to wait more than six weeks for a smart meter installation appointment.
The new regulation will be rolled out from February.
Payouts will also be made when a smart meter installation appointment fails due to a issue within the energy supplier’s control, as well as when a customer reports a problem with their smart meter and their provider doesn’t provide a resolution plan within five working days of the report being made.
Ofgem says the new rules will support the roll-out of smart meters across the UK and give better outcomes to consumers.
This comes after the regulator decided to review its Guaranteed Standards of Performance, including making changes to improve the service offered by energy companies to customers who want a smart meter.
Payout: Customers could get £40 if they wait more than six weeks for a smart meter
Ofgem says its compliance activity has seen over 900,000 non-operating smart meters repaired or replaced since 2024.
The latest Government data indicates that more than 70 per cent of households have smart of advanced meters, with 90 per cent of these working correctly.
The new rules will incentivise suppliers to install and repair meters as soon as possible or face paying compensation to their customers, Ofgem said.
Melissa Giordano, deputy director of systems and processes at Ofgem said: ‘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. These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong.’
These standards are set to be reviewed again in 2027 to ensure they are delivering for consumers.
The regulator also said it will continue with work on automatic compensation for customers with smart meters that aren’t operating in smart mode or have not been fixed in 90 days.
It said this will be implemented later in 2026.