Households with broken or delayed smart meters are finally getting justice and cash compensation, as energy firms face new rules set by Ofgem.
From early 2026, energy suppliers across the UK could be forced to cough up £40 for every customer impacted by delays or failures linked to smart meter installations or repairs.
The energy watchdog, Ofgem, has proposed tough new regulations that would see compensation handed to customers who:
- Wait more than six weeks for a smart meter installation,
- Have a faulty smart meter that isn’t fixed within 90 days,
- Own a meter that fails to function in “smart mode” due to poor connectivity.
“Millions of consumers rely on their smart meters 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 who want a smart meter wait too long to get one installed or face delays on repairs when it stops working. This needs to change,” said Charlotte Friel, Ofgem’s director of retail pricing and systems.
Ofgem’s move is part of a sweeping crackdown that has already led to the repair or replacement of more than 600,000 smart meters since July last year. With nearly 1 in 5 smart meters reportedly faulty, the scale of the issue is substantial, and so is the frustration among households.
Martin Lewis, the founder of MoneySavingExpert.com, didn’t hold back: “Far too many smart meters, likely one in five, don’t work as they should, a problem not just for all the homes with broken ones, but for the smart meter rollout.”
He added that faulty meters, combined with malfunctioning in-home displays, have damaged public confidence, and many now actively discourage friends and neighbours from getting one.
What’s Going Wrong with Smart Meters?
Many smart meters are being stuck in what’s called “dumb mode”, where the device either loses connectivity or stops sending automatic readings to suppliers. This can lead to inaccurate billing, missed energy-saving insights, and a serious dent in customer trust.
Ofgem’s new compensation rules will extend coverage to meters affected by poor connectivity, making more households eligible for redress.
Energy Minister Miatta Fahnbulleh backed the initiative, stating: “Consumers are at the heart of our mission to deliver an energy retail market that works for everyone… That’s why the government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.”
It’s not just households that are in line for payouts. Micro-businesses suffering from meter issues will also qualify for compensation under the proposed rules.
According to Uswitch, 20% of homes with faulty meters have been waiting over two years for a fix, a staggering wait in today’s digital age.
“Building consumer confidence is key to convincing the remaining households to get a smart meter. These proposals by Ofgem bring more focus on getting faulty smart meters fixed, and give consumers the confidence to take the plunge,” said Richard Neudegg, director of regulation at Uswitch.
