People who have a new problem with their smart meter could get compensation
Households equipped with smart meters could be entitled to automatic £40 payments each time they experience one of three specific issues, as new regulations take effect. However, Ofgem is still contemplating an additional issue that may be added to the eligibility list later this year.
In the past, companies merely had targets for installing smart meters for customers, leaving many with malfunctioning devices and subpar customer service. These fresh rules, introduced on February 23, are designed to compel energy firms to prioritise repairs and ensure every smart meter operates correctly.
Problems that can result in £40 compensation:
- Waiting more than six weeks to have your smart meter installed
- Installation appointment fails due to fault within the supplier’s control
- You don’t receive a ‘resolution plan’ within five days of reporting an issue with your smart meter
Melissa Giordano, deputy director of systems and processes at Ofgem, stated: “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.”
The first category only applies to new or first-time installations. It does not apply if you are waiting more than six weeks for an appointment to repair or replace your smart meter. Problems classified as ‘within a supplier’s control’ for the second category include situations such as failing to have an engineer with the appropriate expertise available or lacking the proper equipment to safely carry out the installation.
Resolution plans must outline what steps the company has taken to assess the problem you’ve reported and what measures the firm is implementing to fix it. Resolution plans apply to both smart meters and connected in-home devices.
Ofgem initially introduced the proposals for these smart meter compensation rules in August 2025. At the time, the list of circumstances that could trigger automatic compensation also included if your smart meter was functioning in ‘dumb’ mode.
These are smart meters that fail to transmit readings to the supplier. The original proposal stated households would qualify for the compensation if this wasn’t rectified within 90 days but this rule is still under consideration.
Ofgem said, according to MoneySavingExpert, that it “intends to take forward further work” on the matter “with a view to implementing it later this year”. However, the regulator is awaiting the Government’s response to its own review of smart meter performance standards.
If you encounter one of the qualifying problems, your energy provider ought to issue the £40 compensation within 10 working days and you should not need to take any action to claim it. It may be applied as credit to your energy account or transferred directly into your bank account, with the supplier deciding which method to use.
Should you find yourself waiting beyond 10 working days for the payment, you could receive an additional £40 on top of the initial compensation, though this will only occur once per incident.
