Attention, smart meter users! You might be entitled to some automatic compensation, but there's a catch. Here's the deal: new rules mean energy companies must pay up for certain smart meter issues, but not if your meter's gone 'dumb'.
From today, if you've had problems with your smart meter installation or the meter itself, you could be eligible for £40 in automatic compensation from your energy supplier. But here's where it gets controversial: this doesn't cover cases where your meter has stopped sending readings to your supplier, leaving you in the dark (literally and figuratively).
Energy firms are now legally required to compensate customers for specific issues, including:
- Waiting more than six weeks for a new smart meter installation appointment (not for repairs or replacements).
- Appointment failures due to supplier faults, like not having the right equipment or skilled engineers.
- Not receiving a 'resolution plan' within five working days after reporting an issue with your smart meter or linked in-home devices.
However, there are some limitations. Suppliers won't compensate for issues that started before today, and you won't receive compensation if your supplier has gone bankrupt.
Ofgem, the energy regulator, has promised to review these new policies in early 2027 to ensure they're benefiting consumers. If your supplier owes you compensation, you should receive it within 10 working days without any extra effort on your part. If they miss this deadline, you're entitled to an additional £40 on top of the original amount, but this is a one-time offer per incident.
If you think you're eligible but haven't received your compensation, here's what to do:
- Contact your supplier to chase the payment, referencing Ofgem's 'Guaranteed Standards of Performance'.
- If you're not satisfied with their response, raise a formal complaint with the firm or use the free Resolver tool.
- As a last resort, escalate your complaint to the Energy Ombudsman, an independent body, if you've tried contacting the firm and it's been more than eight weeks since your formal complaint or if you've received a deadlock letter.
But what about those 'dumb' meters? When Ofgem first proposed these new rules in August 2025, they also suggested automatic compensation for meters not sending readings. However, this part of the plan hasn't come into effect yet. Ofgem plans to continue working on this issue with the aim of implementing it later this year, pending the Government's response to their review of smart meter performance standards.
The Government estimates around 10% of meters go 'dumb', but our research suggests the number of broken smart meters is much higher. This is a significant problem, not just for the households affected but also for the smart meter rollout. With so many broken meters, word spreads, and people are less likely to want one installed.
MoneySavingExpert.com founder, Martin Lewis, has been advocating for a change in the rules. He says, "Far too many smart meters don't work as they should. We need energy firms to focus on fixing broken meters promptly, not just those that go into 'dumb' mode, but also the in-home displays that stop working." Lewis is pleased with the progress made so far and looks forward to working with the Government to ensure consumers understand their rights under the new Consumer Charter.
So, while there's progress being made, it seems there's still a long way to go to ensure smart meters live up to their name. What do you think? Are you satisfied with the current state of smart meters and the compensation process? Let us know in the comments!
