Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
New rules affecting all households with smart meters came into force on February 23rd.
Some customers will be eligible for a £40 compensation payment under the new Ofgem regulations.
More than 70% of UK households currently have a smart meter or advanced meter, according to government statistics.
The new rules aim to improve the smart meter experience and support continued rollout.
When Will You Get £40 Compensation?
Ofgem’s new rules mean customers will automatically receive a £40 payment in three situations:
- You wait more than six weeks for a smart meter installation appointment
- A smart meter installation appointment fails due to a fault within the supplier’s control
- You report a problem with your smart meter, but the supplier doesn’t provide a resolution plan within five working days
The key word here is “automatically” – you shouldn’t have to fight for it.
More news:
Why Is Ofgem Doing This?
Ofgem originally announced plans last March to improve the smart meter experience. The watchdog promised to review its guaranteed standards of performance and introduce new rules for energy suppliers.
The changes come after more than 900,000 previously non-operating smart meters have been repaired or replaced since 2024.
Melissa Giordano, deputy director of systems and processes at Ofgem, said: “Smart meters offer customers accurate bills, cheaper tariffs, and real-time energy use tracking. Every customer who wants a smart meter should get one quickly, and it should work from day one.”
She added: “These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong.”
What Are the Benefits of Smart Meters?
Smart meters offer several advantages:
- Accurate bills – no more estimated readings
- Cheaper tariffs – some energy deals are only available to smart meter customers
- Real-time energy tracking – see exactly how much energy you’re using
- Access to energy savings schemes – both from suppliers and apps
Richard Neudegg, director of regulation at Uswitch.com, said: “These rules are good news for households who have been put off getting a smart meter due to previous delays or poor experiences.”
He added: “Knowing there is automatic compensation in place should give consumers greater confidence to go ahead with an installation and reap the benefits of getting a smart meter.”
Will This Actually Change Anything?
The £40 compensation is meant to encourage energy suppliers to get installations right first time and fix problems quickly.
Neudegg said: “Clear standards and compensation should encourage providers to get installations right first time and fix problems quickly, but given how essential smart meter technology is for the energy system, the pressure must remain on suppliers to do better.”
Ofgem said it will review its standards again in early 2027 to make sure they’re meeting the needs of consumers.
What If You Already Had Problems?
The new rules only applied from Monday, February 23rd.
If you had installation delays or problems before this date, you won’t be eligible for the automatic £40 payment under these new regulations.
But if you’re currently waiting for an installation or have a faulty smart meter, these rules could apply to you.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
