Ofgem has announced that everyone with a smart meter could be eligible for £40 payments for two reasons, with Martin Lewis praising the proposals to the regulations governing smart meters
Ofgem has announced that anyone with a smart meter will be entitled to £40 compensation if they experience delays exceeding six weeks for installation, or if their smart meter isn’t repaired within 90 days.
The energy watchdog confirmed significant overhauls to the regulations governing smart meters, earning praise from Money Saving Expert founder Martin Lewis. Ofgem’s new proposals stipulate that customers will receive £40 in compensation if they endure more than a six-week wait for a smart meter fitting.
Customers are also covered if their meter is defective or fails to function in smart mode and remains unfixed after 90 days. It comes after Martin Lewis warns ‘nothing to do with me’ after complaints from money savers.
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The measures are part of Ofgem’s rigorous efforts to address the issue of malfunctioning smart meters, which have led to the regulator mandating the repair or replacement of upwards of 600,000 faulty devices since the previous July. Many smart meters have reportedly been stuck in a ‘dumb mode’, losing connectivity or ceasing to send readings automatically.
According to Ofgem, these plans will compel suppliers to either enhance smart meter performance or face compensation payouts starting early 2026, reports the Express.
Charlotte Friel, Ofgem’s director of retail pricing and systems, stated: “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.”
She continued: “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.”
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Martin Lewis responded to the reforms and said: “Broken smart meters were high on the list of issues I raised with Ed Miliband when he first became Secretary of State. He promised me he’d investigate, so I was pleased when they told me this announcement was coming.
“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. With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one.
“We need to shift firms’ focus from just installing smart meters to promptly fixing those that are broken – not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working. That’s the aim of this plan, and while it’s taking a softer approach than we proposed, it is an improvement and we’ll be monitoring to see if it delivers.
“I’m also happy the Government has taken up our suggestion of a Consumer Charter, giving people definite rights and timetabling, and look forward to working with them to make sure consumers understand it when it launches.”
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