Ofgem sets out new rules to boost smart meter standards and compensation

Slashing wait times for smart meter installations or repairs and compensation for customers facing connectivity issues are among proposals set out by Ofgem today, as part of plans to improve the service offered by energy suppliers. 

The regulator has announced plans to review its Guaranteed Standards of Performance. This includes a new set of rules that could see customers compensated if their supplier fails to offer a smart meter installation appointment more quickly or take swift action to rectify issues reported by a customer. 

Ofgem is proposing four new rules which include: 

• Shorter wait times for smart meter installation appointments, so customers requesting a new meter are offered an appointment within six weeks 

• Compensation for a failed smart meter installation due to a fault within the supplier's control  

• Quicker fixes if a customer reports a problem with their smart meter, requiring suppliers to provide a resolution plan within five working days of the report 

• Compensation for smart meters not operating in smart mode if not fixed within 90 days. 

Ofgem is also consulting on new ways to ensure better protections for smart meter and business customers. This could include applying these proposed standards to business consumers eligible for a smart meter, as well as domestic customers. Alongside updating its current metering rules to ensure they also cover smart meters. 

Tim Jarvis, director general for markets at Ofgem, said:  

“Smart meters are the next generation of electricity meters. Millions of households are already taking advantage of the benefits they can offer, including unlocking cheaper and more flexible tariffs, automatic meter readings, and real-time data to help accurately keep track of spending. 

“But we know that many customers are still waiting too long to get a smart meter installed or facing lengthy delays on repairs when it stops working.  

“That's why we're stepping in to make the process quicker and easier for consumers, and to make sure they're fairly compensated if things do go wrong. 

“If a customer wants a smart meter, it's vital suppliers offer them as soon as possible and that they work in smart mode from the get-go."

Minister for energy consumers Miatta Fahnbulleh said:  

"Smart meters can help households gain control of their energy usage and save money on their bills. We want to make sure more consumers feel the benefits of having one installed.   

“A crucial part of that will be improving the smart meter customer experience, so we welcome Ofgem's proposals to introduce guaranteed standards of performance for smart meters.  

“This will help to ensure people who want to upgrade their meters are better supported through the process, and can make the most of their new smart meter.”   

Guaranteed Standards were introduced by Ofgem to ensure that energy suppliers offer an appropriate level of service and compensation payment 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.     

The plans follow the regulator's commitment to reviewing the Guaranteed Standards as part of its Consumer Confidence programme, which sets out a vision to deliver five-star customer service fit for an increasingly complex market transitioning towards net zero and ensure good outcomes for consumers in vulnerable situations.  

Earlier this year, Ofgem also confirmed the Guaranteed Standards compensation level would increase from £30 to £40 in line with inflation, so customers are fairly compensated when things go wrong. 

According to the latest government data, 66 percent of homes in Britain now have a smart or advanced meter, and more than 90 percent are working correctly. While the smart meter rollout is progressing quickly, the regulator's plans aim to further improve the service customers can expect, and ensure they work as intended. 

ENDS  

Notes to editors

• Smart meter policy and connectivity is led by the Department of Energy Security and Net Zero (DESNZ), as well as the smart meter Data Communications Company (DCC). 

• Suppliers are responsible for providing meters that offer the best outcome for consumers and are set installation targets by the government. Ofgem is responsible for suppliers' compliance with their smart metering obligations. 

• Last year Ofgem opened compliance engagement into six energy suppliers for not meeting their smart meter installation targets and for smart meters not operating in smart mode. More information on this can be found here. 

• This consultation links to Ofgem's consumer confidence programme published in September 2024 which proposed the introduction of new smart meter Guaranteed Standards of Performance (GSoPs) regarding the installation and maintenance of smart meters.  

• As part of this programme, Ofgem committed to undertaking a wider review of the Guaranteed Standards framework following its decision to increase the payment level to £40 from January 2025 to reflect inflation. 

• In addition, the Department of Energy, Security and Net Zero (DESNZ) outlined in its Clean Power 2030 Action Plan its ambition for new GSoPs on smart metering.    

• More information on the smart meter GSoP consultation can be found here. 

• Alongside these changes, the regulator is also proposing to update wording of the rules to clarify that the 2015 regulations apply to smart meters, as well as traditional meters, to ensure customers can expect the best possible service from their supplier.