Households experiencing delays or unsuccessful installations of smart meters will now be eligible for £40 compensation as per the new regulations that have taken effect today.
Certain situations automatically qualify for compensation, such as waiting over six weeks for a smart meter appointment. Compensation will also be provided if an installation appointment fails due to a supplier-controlled fault or if a supplier does not address a reported issue within five working days.
These stricter smart meter rules have been implemented to support the ongoing rollout of smart meters to homes across the UK.
Over 70% of households in the UK currently have smart meters or advanced meters, according to government data. The regulatory body reports that over 900,000 previously non-operational smart meters have been fixed or replaced since 2024.
Ofgem’s deputy director of systems and processes, Melissa Giordano, emphasized the benefits of smart meters, including accurate billing, cost-effective tariffs, and real-time energy monitoring for customers. The aim is to ensure prompt installation and functionality of smart meters for every customer, with the new rules establishing clear expectations for suppliers to enhance performance and protect consumers during service issues.
As energy bills are anticipated to decrease this spring, Cornwall Insight forecasts a drop in the Ofgem price cap from £1,758 to £1,641 annually for a typical dual fuel household. Ofgem is set to announce the next price cap on February 25, covering the period from April 1 to June 30.
Customers on a standard variable rate tariff will be covered by the Ofgem price cap if they are not on a fixed-rate deal. While there is no overall cap on energy charges, bills are calculated based on actual energy consumption.
The Ofgem price cap limits the charges for gas and electricity units, along with standing charges for energy network connection, providing an indication of annual costs for those with standard energy usage.