Consumers Set to Receive £40 Compensation for Smart Meter Delays

Consumers in the UK will soon be eligible for £40 compensation if their smart meter installation takes longer than six weeks, according to new proposals announced by the energy regulator, Ofgem. Additionally, those affected by faulty meters or devices not operating in smart mode, which are not repaired within 90 days, will also qualify for compensation. This initiative aims to address the ongoing issues surrounding faulty smart meters, with Ofgem reporting the repair or replacement of more than 600,000 defective meters since July 2022.

The announcement was welcomed by Martin Lewis, founder of MoneySavingExpert.com, who highlighted the prevalence of malfunctioning smart meters. Lewis estimated that “likely one in five” smart meters are faulty, leaving many consumers frustrated. Numerous devices have reportedly been left in “dumb mode,” which means they have poor connectivity or fail to automatically transmit readings.

Addressing Consumer Concerns

Ofgem’s new regulations will extend compensation eligibility to consumers experiencing poor connectivity, thereby broadening the scope of those who can claim. Charlotte Friel, Director of Retail Pricing and Systems at Ofgem, emphasized the importance of smart meters for consumers, stating, “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.”

Friel acknowledged that many customers face excessive delays in installation or repair services, which she described as unacceptable. “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,” she added.

The proposed regulations indicate that suppliers must enhance their smart meter standards or face financial consequences starting in 2026. This shift in focus is crucial, as Lewis pointed out that consumer dissatisfaction is hindering the smart meter rollout. “With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one,” he stated.

Support for Businesses and Consumers Alike

Under the new rules, micro-businesses will also be eligible for compensation related to smart meter issues. Miatta Fahnbulleh, Minister for Energy Consumers, reinforced the government’s commitment to consumer protection in the energy market. “Consumers are at the heart of our mission to deliver an energy retail market that works for everyone,” she said, adding that the initiative aims to shield households from the unpredictable nature of global fossil fuel prices.

Research from U-switch highlighted the urgency of the situation, revealing that one in five households with a faulty smart meter had been waiting over two years for repairs. Richard Neudegg, Director of Regulation at U-switch, stressed the importance of building consumer confidence to encourage more households to adopt smart meters. He noted, “These proposals by Ofgem bring more focus on getting faulty smart meters fixed, and give consumers the confidence to take the plunge.”

As the UK moves towards a more sustainable energy future, these developments signify a critical step in improving the reliability of smart meters and ensuring consumer satisfaction. The proposed changes reflect an increasing recognition of the need for accountability within the energy sector, aiming to restore faith in smart technology for managing energy consumption.