Faulty smart meters to be tackled and automatic compensation paid for problems – here's what's happening

Broken smart meters to be tackled

Currently firms are fined if they fail to meet targets for installing new smart meters. But those targets don't take into account whether a meter is actually working or now, which disincentivises them from resourcing fixing broken smart meters. This is why MoneySavingExpert.com founder Martin Lewis formally requested Energy Secretary Ed Miliband change the rules in September 2024.

The Government has now confirmed that it will consult on what suppliers will be required to do from 2026 onwards, with the aim of "driving improved rates of meter operation". This consultation will launch on Friday 8 August.

In addition, a new guide to smart metering will be published, "clearly setting out in one place" what you can expect from your supplier when it comes to smart meters. This will be developed into a new 'Consumer Charter' for smart metering "in due course".

Martin Lewis: 'This plan is an improvement – but we'll be watching closely to see if it delivers'

Compensation will be paid to some with faulty smart meters

Here's what the new Ofgem rules should mean once they come into force, hopefully early next year:

• £40 compensation if your smart meter isn't sending readings to your supplier and this isn't fixed within 90 days. In other words, if your smart meter's gone 'dumb', your supplier will have to fix it or pay up.
  
  If your meter's been in dumb mode for over 90 days, Ofgem told us you'll get the payment automatically without having to complain. And you'll get two lots of £40 (£80 total) if both your gas and electricity meters don't work.
  
  It's worth noting that compensation will only be due for the specific problem where your meter isn't sending readings remotely to your supplier ('not operating in smart mode'). The Government estimates this affects around one in 10 (10% of) meters – though our research suggests the true figure of broken smart meters is much higher.

• A quicker fix if you report a problem with your smart meter. Suppliers will have to provide a "resolution plan" within five working days – though we don't yet know what this might involve.

• Shorter wait times for smart meter installation appointments. Customers requesting a smart meter will have to be offered an appointment within six weeks. However, this will only apply to new or first-time installations (not repairs and replacements).

• Compensation if your smart meter installation fails due to a fault within the supplier's control. However, it's not yet clear what "within the supplier's control" will mean in practice or who will decide on this.

Ofgem added that since July 2024, more than 600,000 meters have been reconnected and are now operating in smart mode again after its review into how some big suppliers were handling installations and repairs.