£40 compensation update as energy suppliers face new rules | UK | News
Reducing waiting time to no more than 90 days so households can save on bills (Image: Getty)
The government has announced strict new standards requiring energy suppliers to repair faulty smart meters within 90 days or face serious fines and sanctions. The move by the Department for Energy Security and Net Zero (DESNZ) is designed to protect consumers and ensure households can take full advantage of accurate energy monitoring and savings.
The new rules, which come into force from today (March 10), build on recent reforms made by Ofgem last month, which made consumers entitled to £40 compensation if they encounter issues with the smart meter installation process, such as delayed or failed installations. Households using smart meters will save an estimated £700 million on bills in 2025, according to DESNZ analysis.
While an estimated 92% of smart meters work correctly, many households have experienced long wait times (sometimes several months) for their smart meters to be repaired after they stopped working in “smart mode” and sending automatic readings.
Under the new obligations, suppliers must take all reasonable steps to resolve the problem as soon as possible, within a maximum of 90 days from notification of the fault. Failure to comply may lead to action by the regulator, including enforcement notices and financial penalties.
In addition to the repair deadline, DESNZ has also introduced rules requiring suppliers to replace all smart meters currently based on 2G and 3G networks before these services are shut down by 2033. This ensures that around 40 million smart meters in homes and small businesses across the UK remain functional as local networks switch to 4G services.
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Energy Consumers Minister Martin McCluskey said: “Smart meters are already helping millions of people manage their energy use and save on bills. BHowever, we know that many people may wait several months for their smart meters to be repaired and lose money in the process.
“These new rules will put an end to this, ensure meters are fixed in a timely manner, raise standards,
A statement on Gov.uk explains: “Suppliers are already required to take all reasonable steps to repair smart meters that are not working as they should. The obligations introduced today will now provide a timeframe within which suppliers must make repairs, requiring suppliers to take all reasonable steps to ensure meters are repaired as soon as possible and no later than 90 days after they are notified of the problem. Failure to comply may result in the energy regulator issuing notices to companies or imposing fines.”
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Victoria Bacon, Communications Director at Smart Energy GB, said: “There has been significant progress in improving people’s smart meter experience, with 9 in 10 people now operating in smart mode and the latest data showing 85% of people are happy with their smart meter. The latest Citizens Advice-Ofgem Consumer Satisfaction Survey also shows that satisfaction with smart meters has increased steadily over the last two years.
“It’s important that people have a positive experience with smart meters. With more than 70% of energy meters now smart, the new rules should reassure households and encourage more smart meter installations, giving people greater control over their energy use and access to a wider range of tariffs that can help save money.”
