Martin McCluskey, the Minister for Energy Consumers, said, “Smart meters are already helping millions of people manage their energy use and save on bills. But we know far too many people can be waiting several months for their smart meter to be fixed - and losing money in the process. These new rules will put an end to this, making sure meters are fixed in good time - driving up standards, protecting billpayers, and helping more consumers feel the benefits of having a smart meter.”
Suppliers’ smart meter responsibilities explained
Ofgem, the UK energy regulator, introduced a consumer confidence programme in 2024 that outlined the proposal for smart meter Guaranteed Standards of Performance (GSOP). As part of the programme, the regulator opened compliance engagements with a number of energy suppliers to improve access to smart meters, enabling consumers to better monitor, review, and adjust their usage and potentially reduce bills. The lack of access to smart meter features could also prevent consumers from taking advantage of lower nighttime tariffs.
It is estimated that smart meters helped reduce energy bills by £700m in 2025 and, as such, they are considered a vital tool in reducing household bills.
Suppliers will now face fines and/or legal action if they fail to repair a faulty smart meter within 90 days. This action is separate from any compensation payments that the supplier may become liable to pay to a customer.
Automated compensation for energy customers
At the end of January this year, Ofgem put forward proposals to automate compensation for customers whose smart meters were not repaired within 90 days of being reported as faulty. Although suppliers were already mandated to fix smart meters, automated compensation for failure to meet the deadline is a new measure, introduced to further encourage swift action and fair treatment of consumers. On the 10th March, the Ofgem proposal became government policy.
Under 2026 rules, £40 automated compensation will be paid if:
Faulty smart meters
- A smart meter is not repaired within 90 days of the customer reporting it as faulty
- A resolution plan is not provided within five working days after a customer reports their smart meter and/or in-home device to be faulty
New/First installation of a smart meter
- A customer waits more than six weeks for a smart meter installation
- An installation appointment fails due to a fault that was within the supplier’s control
What to do if you meet the smart meter compensation criteria
Energy customers who meet the compensation criteria need not take any action to receive the compensation payment, other than notifying your supplier of the need for a smart meter fix or installation. Although the 90-day rule to fix a faulty smart meter will not be effective until later this year, the five-working-day rule for a resolution plan to fix your faulty smart meter is effective from 23 February. As are the rules under the new or first installation of a smart meter.
How is the automated compensation paid?
Your supplier will issue your compensation to you without any need for you to raise the failure that has occurred. If compensation is not paid within 10 days of it becoming due, the supplier is liable to pay a further £40 in compensation per incident. The supplier may choose whether to pay the compensation by crediting your energy account or by transfer to your bank account.
If you believe you are owed compensation but have not received it, you should contact your supplier to raise this, quoting the Guaranteed Standards of Performance set out by Ofgem. If the issue remains unresolved, you should escalate it, and you may find it helpful to use this Citizens Advice complaints letter template. Note the date you first raised the issue with your supplier. If you receive no resolution within 8 weeks, you can take your complaint to the Energy Ombudsman. The Energy Ombudsman can support you if your problem is not fixed within six weeks, you receive a 'deadlock letter' to say your problem cannot be fixed or if you are unhappy with the response that you receive.
Further reading
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 30th June 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
