Smart meter problems? You'll be automatically compensated under new rules – but not if your meter's gone 'dumb'

Energy firms will have to automatically pay out for certain issues

From 23 February onwards, you'll be eligible for £40 in automatic compensation per issue from your energy supplier if:

• You have to wait more than six weeks for an appointment to have your smart meter installed. This only applies to new or first-time installations (not repairs and replacements).

• Your smart meter installation appointment "fails" due to a "fault within the supplier's control". For example, not having the right engineer with the right skillset, the right metering equipment, or the correct additional equipment (such as safety equipment) necessary to complete the appointment.

• You report an issue with your smart meter to your energy supplier, and it does not provide you with a "resolution plan" within five working days. Here, suppliers are expected to explain what they've done to assess the issue – which covers both smart meters and linked in-home devices (IHDs) – and what actions they are taking to resolve it.

We've asked Ofgem if suppliers will have to pay compensation for delays or issues that started before 23 February, and we'll update this story when we know more.

Ofgem has promised to review these new policies in early 2027 "to ensure they are driving the right outcomes for consumers".

If your smart meter has gone 'dumb', you won't be compensated yet

When Ofgem first outlined its proposals for new smart meter rules in August 2025, it also said that households would be eligible for an automatic £40 in compensation if their meter wasn't sending readings to their supplier and this wasn't fixed within 90 days.

However, this planned rule won't take effect from 23 February. Instead, the regulator has said it "intends to take forward further work" on the issue "with a view to implementing it later this year". Ofgem is currently awaiting the Government's response to its own separate review into smart meter performance standards.

The Government has previously estimated that around 10% of meters go dumb – though our research suggests the true figure of broken smart meters is much higher.

The problem with broken smart meters

Currently, energy firms are fined if they fail to meet targets for installing new smart meters. But these targets don't take into account whether a meter is actually working or not, which disincentivises them from resourcing fixing broken smart meters. This is why MoneySavingExpert.com founder Martin Lewis formally requested Energy Secretary Ed Miliband change the rules in September 2024.