Households experiencing delays or unsuccessful installations of smart meters will now receive £40 in compensation as per new regulations effective today. Qualifying circumstances for compensation include waiting more than six weeks for a smart meter appointment or if an installation fails due to a supplier-controlled fault. Additionally, compensation is warranted if a supplier doesn’t address a reported issue within five working days.
These stricter rules, in effect from February 23, aim to facilitate the widespread deployment of smart meters across UK households. Currently, over 70% of UK households have smart or advanced meters according to government data. Notably, more than 900,000 non-operational smart meters have been repaired or replaced since 2024, as confirmed by the watchdog.
Melissa Giordano, Ofgem’s deputy director of systems and processes, emphasized the benefits of smart meters, such as accurate billing, cost-effective tariffs, and real-time energy monitoring. The new rules aim to ensure prompt smart meter installations and operational efficiency, providing clarity to suppliers and safeguarding consumer interests.
In related news, energy bills are anticipated to decrease this spring, with Cornwall Insight forecasting a reduction in the Ofgem price cap from £1,758 to £1,641 for a typical dual fuel household. Ofgem is set to announce the next price cap on February 25, covering the period from April 1 to June 30. Consumers on standard variable rate (SVR) tariffs will benefit from the Ofgem price cap unless under a fixed-rate agreement.
It is important to note that while the Ofgem price cap limits charges for gas and electricity units, there is no total cap on overall energy expenses, which depend on individual usage. The price cap sets boundaries for gas and electricity unit charges and standing charges, fixed daily fees for energy network connection, providing an estimated annual cost for typical energy consumption.
