Ofgem Plans Automatic Compensation for Faulty Smart Meters, Installation Delays Across UK

Ofgem has proposed new rules requiring energy suppliers to automatically compensate households £40 if smart meter installations are delayed beyond six weeks or if faulty meters, including those not operating in smart mode, are not repaired within 90 days. These measures aim to address widespread issues with smart meters, such as poor connectivity leaving millions in "dumb mode," which prevents automatic readings and risks inaccurate billing. Since July last year, Ofgem's enforcement has helped repair or replace over 600,000 faulty meters, but many consumers still face long waits and service problems. The regulator emphasizes that these new standards, expected to take effect from early 2026, will set clear expectations for suppliers, incentivize improvements, and protect consumers from poor service. MoneySavingExpert.com founder Martin Lewis welcomed the proposals, noting that about one in five smart meters are faulty, which harms the rollout and customer satisfaction. Despite two-thirds of UK homes having smart meters, the government’s target of 80% installation by year-end remains unlikely without these reforms.