Households experiencing delays or failed installations of smart meters will now receive £40 in compensation according to new regulations effective today. Qualifying circumstances for compensation include waiting over six weeks for an appointment or if an installation fails due to the supplier’s fault. Additionally, compensation will be provided if a supplier does not address reported issues within five working days.
These stricter rules aim to facilitate the ongoing deployment of smart meters to households across the UK. Currently, over 70% of UK households have either a smart or advanced meter, as per government data. Notably, 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, such as accurate billing, cost-effective tariffs, and real-time energy monitoring. The implementation of these rules aims to ensure prompt and functional smart meter installations, setting clear expectations for suppliers and safeguarding consumer interests during potential issues.
Amid expectations of decreased energy bills this spring, Cornwall Insight forecasts a drop in the Ofgem price cap from £1,758 to £1,641 annually 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 a standard variable rate (SVR) tariff will fall under the Ofgem price cap, excluding those under fixed-rate deals.
While there is no overall cap on energy costs, the Ofgem price cap restricts charges for gas and electricity units, along with fixed standing charges for energy network connections. The cap amount indicates the expected annual expenditure for an average energy consumer.