Energy suppliers to be held accountable for faulty and delayed smart meter installations

A smart meter indicating remaining credit balance, in pounds sterling, in a house in London
Smart meter installations will now face increased scrutiny from Ofgem (Image credit: Getty Images)

From February 2026, UK energy suppliers must comply with tougher rules on smart meter installations and repairs.

Customers may automatically receive £40 compensation if an installation is delayed by more than six weeks, an appointment fails due to a supplier's fault, or a reported problem is not addressed within five working days.

The changes are intended to make smart meters more reliable, helping ensure the information they provide can be used to support practical energy-saving tips for households.

Automatic compensation for delays and faults

Under the updated rules, the £40 automatic payment applies in three key situations:

  • When a smart meter installation takes longer than six weeks
  • When an appointment fails due to the supplier’s error
  • When a reported fault is not accompanied by a resolution plan within five working days

The compensation is intended to encourage suppliers to act promptly and prevent customers from being left with unresolved issues.

This comes after reports that found 1 in every 10 smart meters faulty in 2023, requiring a mass recall, an issue which is still not resolved, Ofgem have admitted.

Melissa Giordano, Deputy Director of Systems and Processes at Ofgem, said: “Every customer who wants a smart meter should get one quickly, and it should work from day one. These new rules set clear expectations for suppliers and protect consumers when things go wrong.”

Expanded supplier obligations

Energy suppliers are now required to ensure that smart meters are installed correctly and fully operational in smart mode from the outset.

They must repair or replace meters that are not functioning properly, aiming to reduce long-standing faults and improve overall customer satisfaction.

The rules apply to all UK energy suppliers, creating a consistent standard across the market. Suppliers are also expected to maintain timely communication with customers about appointments and repairs, ensuring transparency throughout the process.

Future standards and monitoring

Hands holding a smart meter

Last year over 600,000 homeowners were forced onto smart meters (Image credit: Getty Images/Olga Dobrovolska)

Ofgem will continue to monitor supplier performance under these updated standards and has committed to reviewing them again in early 2027.

Further rules are planned later this year to cover compensation for smart meters that remain unfixed in smart mode for more than 90 days.

Giordano added: “Automatic compensation remains a powerful way to incentivise the industry to make sure smart meters are working correctly and to fix issues quickly.”

The regulator said these measures are part of a wider strategy to improve the smart meter experience, encourage compliance, and maintain public confidence in the rollout.

Joseph Mullane
News Editor

News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals.  Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.