BBC Expert Issues £40 Ofgem Warning to Smart Meter Users
Energy regulator Ofgem is introducing significant new rules from February 23 that could see thousands of households receiving automatic compensation payments of £40. The changes come as part of strengthened consumer protections for smart meter users across the United Kingdom.
New Compensation Rules for Faulty Smart Meters
According to BBC consumer reporter Holly Hamilton, who discussed the changes on BBC Morning Live this week, the new regulations represent a major shift in how energy suppliers must handle smart meter issues. With over 70 percent of British households now having smart or advanced meters installed, and more than 90 percent functioning correctly, the focus is now on addressing the remaining problems that have frustrated consumers.
"The energy regulator, Ofgem, is really trying hard to clamp down on this," explained Hamilton during her appearance with hosts Gethin Jones and Louise Minchin. "This new rule that's coming in could mean compensation for those who've been affected."
Automatic Payments for Delayed Repairs and Installations
The £40 compensation will be automatically triggered in several specific circumstances, marking a departure from previous systems where consumers had to actively pursue claims. The new Guaranteed Standards of Performance strengthen existing requirements for energy suppliers and introduce financial penalties for non-compliance.
Holly Hamilton outlined the key scenarios where compensation will apply:
- Waiting more than six weeks for a smart meter installation
- Having an installation appointment cancelled due to supplier faults
- Reporting a smart meter problem without receiving a repair plan within five working days
"That's the most common one - people's smart meters break and they can't even get a sign that somebody's going to come out and look at it in a reasonable amount of time," Hamilton noted, emphasising that the payment should be automatic without consumers needing to chase their suppliers.
Addressing Longstanding Consumer Frustrations
The BBC programme highlighted numerous viewer complaints about smart meter issues, with one case mentioned involving a meter that hadn't worked since 2022 despite promises of replacement. Hamilton described smart meters as becoming "the new potholes" in terms of frequent consumer complaints, indicating the widespread nature of the problems.
Melissa Giordano, Deputy Director of Systems and Processes at Ofgem, stated: "Smart meters offer customers accurate bills, cheaper tariffs, and real-time energy use tracking. Every customer who wants a smart meter should get one quickly, and it should work from day one."
She added that the new rules would "set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong."
Implementation and Consumer Impact
The regulations come into force on February 23, with Ofgem stating they form part of broader efforts to enhance the smart meter experience for ordinary Britons. The regulator believes these measures will support the national smart meter rollout while providing better outcomes for consumers.
While the compensation scheme is not retrospective, it provides immediate protection for future issues and creates stronger incentives for energy companies to resolve problems promptly. The automatic nature of the payments represents a significant improvement in consumer protection, removing the burden of claim processes from households already dealing with meter problems.
Ofgem's initiative reflects growing recognition of the importance of reliable smart meter functionality as more households depend on these devices for accurate billing and energy management during ongoing cost of living challenges.
