Households experiencing delays or failed installations with smart meters will now be eligible for a £40 compensation following the implementation of new regulations starting today. Specific scenarios automatically qualify for the compensation, such as waiting over six weeks for a smart meter appointment.
Compensation will also apply if an installation appointment fails due to a supplier-controlled fault or if a supplier fails to address a reported issue within five working days. These stricter rules, effective as of February 23, aim to facilitate the ongoing deployment of smart meters to households throughout the UK.
Government statistics reveal that over 70% of UK households currently possess either a smart meter or advanced meter. The regulatory body reported that more than 900,000 previously non-operational smart meters have been rectified or replaced since 2024.
Melissa Giordano, Ofgem’s deputy director of systems and processes, emphasized the benefits of smart meters, including accurate billing, reduced tariffs, and real-time energy consumption monitoring. Giordano stressed the importance of promptly providing smart meters to all interested customers, ensuring their immediate functionality. These new regulations are designed to establish clear supplier expectations, enhance performance, and safeguard consumers in case of mishaps.
Meanwhile, energy bill reductions are expected this spring, with Cornwall Insight predicting a decrease in the Ofgem price cap from £1,758 annually to £1,641 for a standard dual fuel home. Ofgem will announce the next price cap on February 25, covering the period from April 1 to June 30.
Consumers on a standard variable rate (SVR) tariff will benefit from the Ofgem price cap unless they are under a fixed-rate agreement. While there is no absolute cap on energy costs, bills are calculated based on actual gas and electricity usage.
The Ofgem price cap restricts charges for gas and electricity units, along with fixed daily connection fees. It serves as an estimate of annual expenses for individuals with typical energy consumption patterns.