Households experiencing delays or failed installations of smart meters will now receive a £40 compensation following the implementation of new regulations today. Certain conditions automatically qualify households for the compensation, such as waiting more than six weeks for a smart meter appointment.
Compensation will also be provided if an installation fails due to issues within the supplier’s control or if the supplier does not address reported problems within five working days. These stricter rules aim to support the ongoing deployment of smart meters to households throughout the UK.
Over 70% of households in the UK currently have smart meters or advanced meters, according to government data. Since 2024, more than 900,000 previously non-operational smart meters have been fixed or replaced.
Melissa Giordano, Ofgem’s deputy director of systems and processes, emphasized the benefits of smart meters, including accurate billing, cost-effective tariffs, and real-time monitoring of energy usage. She highlighted the importance of timely and functional smart meter installations, ensuring customer satisfaction.
Energy bills are expected to decrease this spring, with Cornwall Insight predicting a reduction in the Ofgem price cap from £1,758 to £1,641 annually for a typical dual fuel household. Ofgem will announce the next price cap on February 25, covering the period from April 1 to June 30.
Consumers on standard variable rate tariffs will be protected by the Ofgem price cap if they are not locked into fixed-rate deals. While there is no total cap on energy costs, the price cap limits charges for gas and electricity units, as well as fixed daily standing charges for energy network connectivity.
The price cap serves as a reference for annual energy expenses for individuals with typical consumption levels, ensuring transparency in billing practices.