Energy smart meter gone 'dumb'? You may soon be due compensation – here's what's happening

The proposals, outlined below, will put more pressure on suppliers to help people – but they don't address the underlying causes of faulty smart meters. MoneySavingExpert.com founder Martin Lewis has formally requested Energy Secretary Ed Miliband change the rules, as currently firms are fined if they don't meet targets for installing new smart meters. Yet that is so limited it means installing ones that don't work counts – and it disincentivises firms from resourcing fixing broken smart meters.

Just this week, Martin discussed the topic with Octopus Energy boss Greg Jackson, who appeared as a guest on the latest episode of The Martin Lewis Podcast. Mr Jackson explained that, because fixing existing smart meters doesn't count towards the targets, by resourcing fixing them, firms are effectively being penalised for repairs – making it difficult to prioritise them. "That engineer [visit] is a cost that we are happy to pay to make a customer happy, but ultimately we get a regulatory penalty for fixing it," Mr Jackson said.

The plans could mean energy firms have to pay compensation to some with broken smart meters

Here are the key proposals:

• £40 compensation if your smart meter isn't sending readings to your supplier and this isn't fixed within 90 days. In other words, if your smart meter's gone 'dumb', your supplier will have to fix it or pay up.
  
  If your meter's already been in dumb mode for over 90 days, we've asked Ofgem whether you'll get the payment automatically or if you'll have to complain. We're also checking if you'll get two lots of £40 (£80 total) if both your gas and electricity meters don't work, and we'll update this story when we know more.
  
  It's worth noting that compensation will only be due for the specific problem where your meter isn't sending readings remotely to your supplier ('not operating in smart mode'). The Government estimates this affects around 10% of meters – though our research suggests the true figure of broken smart meters is much higher.

• A quicker fix if you report a problem with their smart meter. Suppliers will have to provide a "resolution plan" within five working days – though we don't yet know what this might involve.

• Shorter wait times for smart meter installation appointments. Customers requesting a smart meter will have to be offered an appointment within six weeks – though Ofgem told us this is will likely only apply to new or first-time appointments (not repairs and replacements).

• Compensation if your smart meter installation fails due to a fault within the supplier's control. However, it's not yet clear what "within the supplier's control" will mean in practice or who will decide on this.

The proposals, which will now be consulted on until May, follow a review conducted by Ofgem last year into whether energy suppliers were hitting their smart meter installation targets and ensuring that smart meters already installed were working in smart mode.