The new rule comes into force within weeks and customers have been given a full breakdown of what it means by consumer expert Holly Hamilton
A BBC expert has alerted people to new rules that could see them earn £40 in compensation payments. More than 70 per cent of homes in Britain have a smart or advanced meter, according to energy regulator Ofgem.
More than 90 per cent are working correctly. But where they are not, new powers taking effect later this month will mean people can get compensation.
The matter was discussed on BBC Morning Live this week. Consumer reporter Holly Hamilton appeared on the show to explain the upcoming changes with presenters Gethin Jones and Louise Minchin.
Gethin began by saying many people had been getting in touch about smart meters – suggesting the changes will be welcomed widely. Louise Minchin stepped in to say: “David’s been in touch, Holly. I’m going to read you this: David says, ‘Our smart meter has not worked since 2022.
“‘In 2024, a man came to look at it, said it needed to be replaced, but I’ve still had nothing.’ So, there might be good news for him possibly? Is he possibly entitled to compensation?”
Consumer expert and BBC Morning Live regular Holly Hamilton then set out what was happening this month. She said: “I mean, you really need some good news here because smart meters feel like the new potholes, because we are talking about this all the time. So many people have issues with this.
“But yes, a little bit of good news because the energy regulator, Ofgem, is really trying hard to clamp down on this. So they are saying that this new rule that’s coming in could mean compensation for those who’ve been affected.
“We’re talking about £40 compensation to be exact. This is really important for anyone like David who’s been waiting a long time to get a fix, or even to get in touch with the energy company in the first place.”
Consumers had been protected over standards under existing rules. But the compensation element is new.
According to Ofgem, customers will automatically receive a £40 payment when:
- a customer has to wait more than 6 weeks for a smart meter installation appointment
- a smart meter installation appointment fails due to a fault within the supplier’s control
- a customer reports a problem with their smart meter, but the supplier does not provide a resolution plan within five working days of the report
Holly said: “Look, the fact that they should be up to a certain standard, that’s not new, okay? Because Ofgem has a particular set of rules in place – the Guaranteed Standards of Performance that all energy suppliers have to adhere to. They have to offer this basic decent level of service.
“But now if they don’t, then you are entitled to compensation. And what’s new here is that the rules have been strengthened, okay? So it means that you should automatically get this payment.
“You shouldn’t have to go looking for it. And there are certain reasons that you get this.”
How the new Ofgem smart meter rules will work
“First of all, if you’ve waited for more than six weeks for an installation, or maybe an installation appointment has been cancelled because of a fault with the supplier,” Holly said. “Or if you’ve reported a problem with your smart meter and the supplier doesn’t give you a plan to fix it within five working days.
“That’s the most common one – people’s smart meters break and they can’t even get a sign that somebody’s going to come out and look at it in a reasonable amount of time. So like I say, the payment should be automatic.
“That’s really important here, so you shouldn’t have to chase it. It’s not retrospective, so maybe in David’s case, they’ve got a matter of days then to fix it if they do swoop in at the final hour. Either way, it’s a win-win.
“It comes into force on the 23rd of February. And the idea is just to give that little nudge that I think the energy suppliers do need to try to get these smart meters fixed, to get the problems all sorted. We know that it’s affecting a lot of people; we see it in the emails all the time.”
Ofgem says its new Guaranteed Standards will support a smart meter rollout in the UK to “provide better outcomes for consumers”. The body says that the measures are part of its wider work to better the smart meter experience of ordinary Brits by toughening up requirements – and taking action to improve the performance of firms.
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.”
