Plans for new smart meter standards and compensation rules
11 August 2025
Customers could receive automatic compensation for delays and faults with smart meters under new rules proposed by Ofgem. The energy regulator said the measures, due to come into force in early 2026, are designed to improve installation times and repair services.
The proposals include compensation for customers waiting more than six weeks for an installation appointment, failed installations caused by issues within a supplier’s control, and delays in providing a resolution plan for reported faults. Suppliers would also be required to fix smart meters not operating in “smart mode” within 90 days or pay compensation. The rules would apply to households and microbusinesses.
Following a consultation earlier this year, Ofgem confirmed it intends to expand compensation for meters that cannot operate in smart mode due to wider connectivity problems. The regulator said the changes will benefit more customers and put pressure on suppliers to meet higher service standards.
Alongside enhanced protections for households, microbusinesses will also benefit from greater smart meter rights and compensation when things go wrong under the new rules.
The plans are part of wider efforts to improve the smart meter rollout, which currently covers 66% of homes in Britain, with more than 90% of those meters functioning correctly. Over the past year, Ofgem’s compliance work has resulted in more than 600,000 faulty smart meters being repaired or replaced.
Under existing Guaranteed Standards of Performance, suppliers must make a £40 automatic payment when they fail to meet certain service requirements, such as keeping appointments or fixing faulty meters promptly. Ofgem’s new rules would expand these protections specifically for smart meter customers.
Charlotte Friel, director of retail pricing and systems at Ofgem, comments:
“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.
“We’re working closely with suppliers to drive improvement, and have seen more than 600,000 faulty smart meters reconnected since last July after we opened compliance engagement. This is only the beginning – with automatic compensation, faster fixes, and improved installation standards well on the way, getting a smart meter will be quicker and easier than ever.
“These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.”
Energy UK’s chief executive Dhara Vyas comments:
“By helping the country make the best use of its energy resources, smart meters also bring benefits to the whole system and every customer. We want all customers to enjoy these benefits so it’s right that suppliers should be held to the expectation of providing a good level of service when it comes to installing and maintaining smart meters. A focus on ensuring that smart meters continue to work properly once installed is something the industry has been calling for.
“For these new standards to work effectively for both customers and suppliers, they must be clear and fair, compensating when the service provided isn’t up to the mark but also recognising when suppliers have made every effort to resolve a problem that ultimately isn’t in their control. It’s also important that they work in harmony with other requirements around the smart meter programme.”
The regulator will now launch a statutory consultation to gather feedback before finalising the standards. If implemented, the measures will require suppliers to provide quicker service or face financial penalties in the form of compensation to their customers.
