Revision of smart meter regulations: reasons why service providers might have to compensate you for subpar installation and service

In an effort to raise standards, Ofgem has established new guidelines that may make it simpler for customers who experience delays or malfunctions with their smart meters to seek compensation

After Ofgem proposed new regulations for energy suppliers, millions of customers might be eligible for compensation in the future if their smart meter malfunctions or installation is delayed.

Since smart meters were introduced in 2011, some households have experienced issues. While some smart metres have been installed successfully, others have not.

However, starting next year, consumers may be entitled to compensation in four additional situations under the proposed regulations.

Which four new regulations could result in customers receiving automatic compensation?

Four new regulations that Ofgem has proposed would automatically compensate impacted customers. They are as follows.

In the event that a customer has to wait more than six weeks for an appointment to install a smart metre, if the installation fails due to a fault within the supplier's control, if a customer reports a problem with their smart metre and the supplier does not provide a resolution plan within five working days, or if the smart metre does not function in smart mode and is not fixed within ninety days, including when this is due to connectivity issues, Ofgem says their compliance team has seen more than 600,000 defective smart metres reconnected since last July, and the new regulations will help them make the process of getting a smart metre quicker and easier.

Key stakeholders will be given the chance to provide input on the rules, which are a component of a review of Ofgem's Guaranteed Standards of Performance.

Early in 2026, the regulator hopes to implement the new smart meter standards if the rules pass the consultation.

Millions of customers depend on their smart meters every day for precise billing, lower tariffs, automated meter readings, and real-time data to help monitor their spending, according to Charlotte Friel, director of retail pricing and systems at Ofgem.

However, we are aware that many consumers who desire smart meters have to wait too long for them to be installed or experience delays in repairs when they malfunction.

The new regulations, she continued, "are about protecting consumers from poor service if things go wrong, setting clear expectations of suppliers, and incentivizing them to boost smart meter standards."

By the end of 2025, the government wants 74.5 percent of homes to have smart meters, and the crackdown comes as Ofgem tries to speed up the rollout of smart meters throughout Britain.

According to Ofgem, approximately 90% of the 39 million smart meters in the UK function as intended; however, approximately 30.9 million households are still left with a malfunctioning meter.

Describe a smart meter.

An energy meter that sends readings to your energy supplier automatically at predetermined intervals is called a smart meter.

The Department of Energy Security and Net Zero (DESNZ) recently released data showing that by the end of March 2025, about 39 million homes, or 67 percent of all homes, had smart meters.

You may find it easier to lower your energy costs if you use smart meters to monitor your energy consumption.

How will a smart meter that is defective or delayed be compensated for?

Should you experience any of the previously mentioned issues, you may be eligible for compensation if the new regulations are put into effect in early 2026.

Customers are entitled to a standard 40 of compensation under Ofgem's current Guaranteed Standards of Performance (GSoP) if their supplier does not: schedule and maintain appointments; look into and correct meter faults; or switch suppliers within five working days.

The GSoP will incorporate the proposed new smart meter regulations, which would obligate suppliers to provide an equivalent amount of compensation in the event that you experience issues with your smart meter.

According to Ofgem, your supplier will use the current GSoP system to automatically pay you any compensation that you are entitled to.

It is likely a good idea to notify your energy provider if you are experiencing issues with your smart meter so that it can be fixed, even though the regulator states that consumers will not need to apply for this compensation.

You can get in touch with the Energy Ombudsman if you don't get paid or if you think your energy provider is acting improperly.