Ofgem drives forward plans for new and improved smart meter rules
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Energy suppliers must improve smart meter standards or pay out from
early 2026 Compensation for faults and delays could
increase and extend to even more consumers, including
microbusinesses More than 600,000 smart meters fixed as Ofgem
cracks down on faulty smart meters through compliance
action. New smart meter standards and more compensation
for customers facing long wait times for installations or
repairs...Request free trial
New smart meter standards and more compensation for customers facing long wait times for installations or repairs are set to be introduced next year, under plans put forward by Ofgem today [Friday 8 August 2025]. 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 proposing four new rules which mean consumers will receive automatic compensation:
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 percent of homes in Britain have a smart or advanced meter, and more than 90 percent 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. ENDS Notes to editors
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