Ofgem has given an update

11:13, 30 Jan 2026Updated 12:33, 30 Jan 2026

Close up of 'smart meter' showing sign of electricity and gas energy usage behind illuminated cooker

The idea is to protect consumers(Image: Allan Baxter via Getty Images)

Energy watchdog Ofgem has confirmed a rule change that will start within days. It announced on Friday that customers experiencing delays or botched smart meter installations could be entitled to £40 compensation starting next month.

The regulator confirmed that stricter smart meter regulations will take effect from February, following plans first unveiled last March aimed at enhancing the customer experience. Under the new framework, households will automatically receive £40 in compensation when they’re forced to wait beyond six weeks for a smart meter appointment, when an installation fails due to issues within the supplier’s control, or when a supplier doesn’t provide a resolution plan for a reported problem within five working days.

An individual is holding a mobile device displaying a dashboard with various meters and gauges. A coffee cup is placed on a nearby table, and a window is visible in the background.

Ofgem is tightening up(Image: Getty Images/iStockphoto)

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

A spokesperson from Smart Energy GB 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% 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.”

Smart Meter with Budget Exceeded Warning

Changes start soon(Image: Webistry via Getty Images)

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. 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.

“It’s important that everyone who wants a smart meter has a positive experience from the outset, and this move could encourage greater uptake of the technology. Having a smart meter can unlock new and often cheaper energy tariffs, as well as helping households track and manage their personal energy use, and they can rely on more accurate billing.

“A smart meter also grants households access to various energy savings schemes, either from their supplier or via apps such as Uswitch, which could earn them money in their pocket or off their bills. 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.”