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

Energy firms now have to pay out automatically for certain issues

For new problems first arising on or after Monday 23 February, 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.

Suppliers won't have to pay compensation for delays or issues that started before Monday 23 February, and you also can't get compensation if your supplier has since gone bust.

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

Due compensation? You should get it within 10 working days

If your supplier owes you compensation as a result of one of the issues above, they must pay this within 10 working days without you having to do anything to request it. The money can be paid into your energy account as credit or directly into your bank account (it's up to suppliers to choose).

If your supplier misses this payment deadline, you can get an EXTRA £40 on top of the original amount – though this only happens once per incident. If you think you're eligible but haven't received anything, here's what to do:

1. Contact your supplier to chase the payment. Your compensation rights come from Ofgem's 'Guaranteed Standards of Performance' for energy firms – you can reference this when explaining the situation.

2. If you're not happy with its response, raise a formal complaint. You can do this directly with the firm or using the free Resolver tool, which will keep track of your progress and evidence.

3. As a last resort, escalate your complaint. If you've already tried contacting the firm and it's been more than eight weeks since you lodged your formal complaint (or you've received a deadlock letter), you can then take your gripe to the free Energy Ombudsman. This is an independent body that handles disputes between consumers and energy firms.

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 has not taken effect from 23 February. Instead, the regulator says 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

Previously, energy firms were only fined if they failed 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.