Smart meter customers eligible for £40 compensation after failed installations, Ofgem confirms

Patrick O'Donnell

By Patrick O'Donnell


Published: 30/01/2026

- 11:09

Updated: 30/01/2026

- 11:59

Millions of households use smart meters to measure how much they will towards their energy bills in real-time

Energy regulator Ofgem has confirmed smart meter customers who have facing delays or failed installations could receive £40 compensation from next month, in a win for consumers.

The energy regulator said tougher smart meter rules will come into force from February, having originally announced plans to last March to improve the smart meter experience for consumers.


According to Ofgem, households are set to automatically get£40 when they have to wait more than six weeks for a smart meter appointment, when an installation appointment fails due to a fault within the suppliers control, or when a supplier does provide a resolution plan for a reported issue within five working days.

Melissa Giordano, the deputy director of systems and processes at Ofgem, broke down why this is an important next step for the regulator to take in assisting British families.

Ofgem logo

Smart meter customers are due compensation, Ofgem has revealed

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GETTY

She explained: "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. These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong."

Previously, Ofgem's director of retail pricing and systems, Charlotte Friel, said: "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.

"But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working: this needs to change.

Smart meter

Thousands of households use smart meters

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PA

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."

Energy Consumers Minister Miatta Fahnbulleh shared: "Consumers are at the heart of our mission to deliver an energy retail market that works for everyone, as we accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes.

"That's why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed."

In March, Ofgem announced plans to review its Guaranteed Standards of Performance, setting a new standard for suppliers operating in the sector.

A smart meter next to an energy billSuppliers are pushing hard for smart meter conversions to meet Government targets and avoid hefty fines | PA

A Smart Energy GB spokesperson said: “Considerable progress has been made in improving people’s experience of smart meters, with more than nine in 10 now operating in smart mode and the latest data showing 85 per cent of people are happy with their smart meter.

"The latest Citizens Advice-Ofgem Consumer Satisfaction Survey shows consumer satisfaction with smart meters increasing for the fourth successive wave over the past two years.

"It’s important that people have a positive experience of smart meters.

"The new measures announced by Ofgem should provide further reassurance for households and businesses about the installation process and resolution of any issues, so they can fully benefit from their smart meter: including greater control over their energy use and access to flexible tariffs that can help save money."

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