The changes are coming into effect from February and will mean customers have better access to lower cost services – as well as compensation when things go wrong
New regulations affecting energy companies, including Octopus, British Gas, Ovo, EDF and E.on, are coming into effect in February. The changes have been praised as “good news” for households, with new compensation measures in place and the potential for lower charges.
As of this month, customers who experience significant delays in getting a new smart meter or missed installation appointments will receive £40 in compensation. This initiative is part of a wider crackdown on issues related to these devices, which has already seen suppliers repair or replace 900,000 non-functional smart meters.
Industry regulator Ofgem announced on Friday that new standards for smart meters and additional compensation for customers facing long wait times for installations or repairs will be implemented from February. It confirmed the introduction of new rules whereby people 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
Richard Neudegg, director of regulation at Uswitch.com, commented on the announcement, saying: “These rules are good news for households who have been put off getting a smart meter due to previous delays or poor experiences. Knowing there is automatic compensation in place should give consumers greater confidence to go ahead with an installation and reap the benefits of getting a smart meter.
“It’s important that everyone who wants a smart meter has a positive experience from the outset, and this move could encourage greater uptake of the technology. Having a smart meter can unlock new and often cheaper energy tariffs, as well as helping households track and manage their personal energy use, and they can rely on more accurate billing.”.
“A smart meter also grants households access to various energy savings schemes, either from their supplier or via apps such as Uswitch, which could earn them money in their pocket or off their bills. Clear standards and compensation should encourage providers to get installations right first time and fix problems quickly, but given how essential smart meter technology is for the energy system, the pressure must remain on suppliers to do better.”
Last March, Ofgem unveiled proposals to overhaul its Guaranteed Standards of Performance. This included introducing fresh regulations requiring energy suppliers to enhance the service provided to customers seeking a smart meter.
These updated Guaranteed Standards will bolster the smart meter rollout whilst delivering improved outcomes for consumers. They represent part of Ofgem’s broader efforts to enhance the smart meter experience by strengthening requirements and taking measures to elevate supplier performance.
Since 2024, Ofgem’s compliance engagement has resulted in more than 900,000 previously non-functioning smart meters being repaired or replaced. This number continues to grow, and Ofgem’s new standards will further encourage suppliers to install and repair smart meters promptly or compensate their customers.
Announcing the move on Friday, 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.”
The latest government figures show that over 70% of homes in Britain have a smart or advanced meter, with more than 90% operating correctly. The Guaranteed Standards of Performance were introduced by Ofgem to ensure energy suppliers provide an appropriate level of service and compensation to customers when standards fall short.
Suppliers are currently obliged to make an automatic payment of £40 to consumers if they fail to meet the minimum standards set out in the Guaranteed Standards. This covers making and keeping appointments, investigating and fixing or replacing credit or prepayment meter faults, and switching suppliers within five working days.
The recent declaration verifies that smart meters will now be included in these measures. These provisions will be implemented from February 2026 and reassessed in early 2027.
