Households experiencing delays or unsuccessful installations of smart meters will now be entitled to a £40 compensation as per new regulations set to take effect next week. The compensation will be automatic under specific conditions such as waiting over six weeks for a smart meter appointment.

Additionally, compensation will apply if an installation appointment fails due to the supplier’s fault or if a supplier fails to provide a resolution plan within five working days. These stricter rules are being implemented from February 23 to support the ongoing deployment of smart meters in UK homes.

Government statistics reveal that over 70% of households in the UK currently have smart or advanced meters installed. According to the watchdog, 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, including accurate billing, cost-effective tariffs, and real-time energy monitoring. Giordano stressed the importance of ensuring prompt smart meter installations that function correctly from the start and highlighted that the new rules aim to establish clear supplier expectations, drive improved performance, and safeguard consumers in case of issues.

Meanwhile, energy bills are anticipated to decrease this spring, with Cornwall Insight predicting a drop in Ofgem’s 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.

Customers on standard variable rate (SVR) tariffs will benefit from the Ofgem price cap if they are not on fixed-rate deals. While there is no total cap on energy costs, the price cap regulates charges for gas and electricity units, as well as fixed daily standing charges for energy network connections.

The price cap figure serves as an estimate of the annual expenses for individuals with average energy consumption.