Three New Smart Meter Compensation Rules Take Effect Next Monday
Households across England will see significant changes to smart meter regulations starting next Monday, with new rules introducing automatic compensation for various issues. For any new problems arising on or after February 23, residents will be eligible for £40 in automatic compensation per issue directly from their energy supplier.
Eligible Circumstances for £40 Compensation
The £40 compensation will be available in three specific circumstances under the updated regulations:
- If you have to wait more than six weeks for an appointment to have your smart meter installed.
- If your smart meter installation appointment "fails" due to a "fault within the supplier's control."
- If you report an issue with your smart meter to your energy supplier and they do not provide you with a "resolution plan" within five working days.
Industry Response and Consumer Impact
Commenting on the smart meter plans when they were first proposed in August 2025, MoneySavingExpert.com founder Martin Lewis expressed cautious optimism. "Broken smart meters were high on the list of issues I raised with Ed Miliband when he first became Secretary of State," Lewis stated. "He promised me he'd investigate, so I was pleased when they told me this announcement was coming."
The financial expert, who also appears on BBC and ITV programming, highlighted the scale of the problem: "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."
Lewis emphasized the negative word-of-mouth effect: "With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one." He stressed the need for energy companies to shift their focus from installation to maintenance: "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."
Government Approach and Future Monitoring
The 52-year-old consumer champion acknowledged the government's approach: "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."
Lewis also welcomed additional consumer protections: "I'm also happy the Government has taken up our suggestion of a Consumer Charter, giving people definite rights and timetabling, and look forward to working with them to make sure consumers understand it when it launches."
The new rules represent a significant step toward addressing widespread concerns about smart meter reliability and customer service in England's energy sector, with automatic compensation designed to incentivize better performance from energy suppliers.
