In March this year, the energy regulator announced plans to review its Guaranteed Standards of Performance (GSoPs). This included a new set of rules to improve the service offered by energy suppliers to customers that want a smart meter, which are now another step closer. Ofgem is now proposing four new rules which mean consumers will receive automatic compensation: 

1. where a customer has to wait more than 6 weeks for a smart meter installation appointment 
2. for a failed smart meter installation due to a fault within the supplier’s control  
3. if a customer reports a problem with their smart meter, requiring suppliers to provide a resolution plan within five working days of the report 
4. for smart meters not operating in smart mode if not fixed within 90 days. 

Following an initial consultation, Ofgem has also confirmed it plans to extend the requirement for suppliers to offer compensation for smart meters not operating in smart mode, particularly those facing wider connectivity issues, meaning even more customers will benefit from the change.

Alongside enhanced protections for households, microbusinesses will also benefit from greater smart meter rights and compensation when things go wrong under the new rules.

This is part of Ofgem’s wider work to improve the smart meter experience by toughening up requirements and taking action against suppliers that don’t comply with its rules. Over the past year, Ofgem’s compliance engagement has seen more than 600,000 previously non-operating smart meters repaired or replaced.

This figure continues to rise, and Ofgem’s new standards will further incentivise suppliers to install and repair smart meters as soon as possible or pay their customers compensation.

Charlotte Friel, director of retail pricing and systems at Ofgem, 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.

“We’re working closely with suppliers to drive improvement, and have seen more than 600,000 faulty smart meters reconnected since last July after we opened compliance engagement. This is only the beginning - with automatic compensation, faster fixes, and improved installation standards well on the way, getting a smart meter will be quicker and easier than ever.

“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.”

Minister for energy consumers Miatta Fahnbulleh said: “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.

“This marks another step in our work to bring down bills for working people and rebuild consumers’ confidence in the energy sector.”

According to the latest government data, 66% of homes in Britain have a smart or advanced meter, and more than 90% are working correctly. While the smart meter rollout is progressing quickly, Ofgem’s plans aim to further improve the service customers can expect and ensure that if things do go wrong, they are put right as quickly as possible, and customers are fairly compensated.

The Guaranteed Standards of Performance were introduced by Ofgem to ensure that energy suppliers offer an appropriate level of service and compensation payments to customers when standards are not met.

Suppliers are currently required to make an automatic payment of £40 to consumers if they fail to meet the minimum standards outlined in the Guaranteed Standards. This includes making and keeping appointments, investigating and fixing/replacing credit or prepayment meter faults, and switching supplier within five working days.

Ofgem will now open a statutory consultation to seek feedback from stakeholders and aims to have the new proposed smart meter standards in place from early 2026.

Angus McMillan from the Extra Help Unit (EHU) at Citizens Advice Scotland, said: “We regularly support people impacted by faulty meters with issues ranging from loss of connectivity and false readings to over-charging. And too often these problems are compounded when engineers then fail to keep appointments to fix the meter.

“Poor service like this is not just annoying. It can be devastating to households if their energy supply is interrupted or if they are overcharged, leading to real misery for those affected.

“We have long called on Ofgem to toughen enforcement measures on suppliers who let down their customers in this way and we’re pleased to see that they have listened. We will wait to see more detail in due course, but the bottom line is that nobody should suffer because their supplier has given them a meter that doesn’t work.”

Andrew Bartlett, chief executive of Advice Direct Scotland, added: “This seems to be a win for energy customers. Smart meters were supposed to be about empowering consumers, but in too many cases they still cause frustration.

“Ofgem’s new rules will ensure that energy suppliers are held to account if things go wrong, whether it’s long delays, faulty installations, or meters not working as they should.

“Automatic compensation and clearer standards will give people more confidence that making the switch to a smart meter is worth it.

“We welcome these changes and look forward to suppliers acting swiftly to meet the new expectations.”