Huge smart meter shake-up including automatic compensation for delays to fixing ‘dead’ ones

ENERGY suppliers will be forced to pay compensation for delayed smart meter installations and faulty devices, Ofgem has announced.

Under new rules, customers will receive £40 if installation takes longer than six weeks or if a broken smart meter isn’t fixed within 90 days.

It comes as part of a crackdown on broken smart meters, which has seen the regulator help enforce the repair or replacement of more than 600,000 faulty meters since July last year.

Millions more or these devices are still stuck in “dumb” mode, where they can’t transmit readings due to poor connectivity.

As of March 2025, government data shows that 3.4million smart meters aren’t sending automatic readings.

This means customers still have to manually record their meter readings and send them to their energy supplier.

If they don’t, they risk inaccurate bills – either paying too little and later facing a large bill or paying more than they should.

Charlotte Friel, director of retail pricing and systems at Ofgem, said: “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.

“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.”

The plans mean that suppliers will need to improve smart meter standards or pay out from early 2026, according to Ofgem.

MoneySavingExpert.com founder Martin Lewis welcomed the proposals as he said “likely one in five” smart meters are faulty.

He said: “With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one.

“We need to shift firms’ focus from just installing smart meters to promptly fixing those that are broken – not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working.”

Under the new rules, micro-businesses will also be able to get compensation for smart meter issues.

Minister for energy consumers Miatta Fahnbulleh said: “Consumers are at the heart of our mission to deliver an energy retail market that works for everyone, as we accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes.

“That’s why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.”

How can I raise a complaint with my energy supplier?

Similar to financial services firms, energy companies have to have a complaints procedure for customers to follow.

When you make a complaint, follow this procedure so they have the information they need to resolve the issue.

Explain the problem and what you want your supplier to do about it.

Check your energy supplier’s website for an explanation of how to launch a complaint.

Energy suppliers have eight weeks to respond and come to a decision.

If it doesn’t or you’re unhappy with the response, you can take the firm to the Energy Ombudsman.

The Energy Ombudsman may be able to help if you have a complaint about an energy or communications provider.

Before submitting your complaint to it, you must have logged a formal complaint with your provider and worked with the firm to resolve it.

You must also have received a so-called deadlock letter, where the provider refers your complaint to the Energy Ombudsman.

You can also complain if you haven’t had a satisfactory solution to your problem within eight weeks.

The Energy Ombudsman then bases its decision on the evidence you and the company submit.

If you choose to accept its decision, your supplier then has 28 days to comply.

The Ombudsman’s decisions are binding on the energy company.

If your supplier refuses to follow the instructions, the Ombudsman may contact Ofgem to remedy the situation, but there’s no set period for escalating issues to the regulator, and it’s not up to the customer.

If an individual chooses not to accept the Ombudsman’s final decision, they lose the right to the resolution offer.

Customers still have the right to take their complaint further through the courts.

But remember, this can be a costly and lengthy exercise, so it’s worth thinking carefully before taking this step.

What energy bill help is available?

There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.

If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.

This involves paying off what you owe in instalments over a set period.

If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.

Several energy firms have schemes available to customers struggling to cover their bills.

But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.

For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.

British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.

You don’t need to be a British Gas customer to apply for the second fund.

EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.

Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).

The service helps support vulnerable households, such as those who are elderly or ill.

Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.

Get in touch with your energy firm to see if you can apply.