Energy firms now have a 90-day rule to follow – or they’ll need to pay customers
The rules are changing for anyone with a smart meter at home(Image: Getty)
The Labour Government has introduced three ‘rules’ for energy providers following a review of how smart meters are causing issues across the UK. It has been confirmed through one of these ‘rules’ impacting energy suppliers that, in certain situations, all customers could be eligible for compensation.
The specifics were explained by the Martin Lewis ‘MoneySavingExpert (MSE) team, which found that three out of five Brits who reported an issue with their smart meter to energy providers have waited over three months for a resolution. Problems with the device can subsequently affect energy bills, which cost households money they shouldn’t be paying.
Smart meters typically automatically send readings from homes to energy suppliers, eliminating the need for households to submit manual readings. This automated process is meant to make life easier and remove the risk of forgetting to submit, but errors can occur, and glitched readings may start to ‘guess’.
Incorrect readings from these devices can occasionally result in bills being calculated higher than a household’s actual usage. Citizens Advice advises people to contact their supplier as soon as possible if their smart meter isn’t functioning properly.
Ofgem announced earlier this year that it would introduce compensation for consumers for a range of smart meter-related issues. Since then, the Government has set new licence conditions for energy suppliers, requiring them to fix faulty smart meters as soon as possible, no later than 90 days from the date they first become aware. The new rules will come into force in early May, following legislation, reports the Express.
On the MSE website, Martin Lewis said: “Broken smart meters were high on our list of issues we put to the Government when it came into power, so it is good to see some progress. Far too many smart meters, likely one in five, don’t work as they should – a problem not just for all the homes with broken ones, but for the smart meter rollout.
“With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one. We need to shift firms’ focus from just installing smart meters to promptly fixing those that are broken – not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working.
“That’s the aim of this plan, and while it’s taking a softer approach than we proposed, it is an improvement, and we’ll be monitoring to see if it delivers. I’m also happy the Government has taken up our suggestion of a Consumer Charter, giving people definite rights and timetabling, and I look forward to working with them to make sure consumers understand it when it launches.”
What are these new rules, and what do they mean for me?
1) Your energy supplier will have up to 90 days to repair your faulty smart meter or face a penalty
If your smart meter isn’t sending readings to your supplier and isn’t repaired within 90 days of your supplier being notified of the problem, it could now face enforcement action from energy regulator Ofgem. This could involve fines or legal proceedings. However, this won’t include repairing faulty in-home displays (the device in your home that assists you in monitoring usage).
2) Energy suppliers will be obliged to submit plans to Ofgem demonstrating two key aspects
The Government expects suppliers to start taking measures in 2026 to meet targets for smart meter installations and ensure these smart meters are functioning correctly. Firms will also need to take ‘reasonable steps’ to complete the smart meter rollout by 2030.
3) All smart meters still connected to 2G and 3G will need to be replaced
The Government is also formulating a new ‘Consumer Charter’. This is designed to clearly inform consumers about what they can expect from the new regulations. Until now, smart meter providers have only been fined if they fail to meet targets for installing new devices – which doesn’t consider whether a meter is actually working, effectively discouraging companies from repairing broken ones.
The new rules announced on March 10 line up with Ofgem’s new ‘Guaranteed Standards’, which introduced an automatic £40 compensation for consumers experiencing issues with their smart meter or its installation as of February 23, 2026.
Under these new rules, people will be eligible for compensation if:
- They have to wait more than six weeks for an appointment to have their smart meter installed (applies to new or first-time installations, not repairs and replacements).
- Their smart meter installation appointment “fails” due to a “fault within the supplier’s control”.
- They report an issue with their smart meter to the energy supplier, but the energy supplier does not provide them with a “resolution plan” within five working days.
