A new rule change impacting smart meter installations, which came into effect this week, could potentially put £40 directly into the pockets of thousands of British households.
New regulations require energy suppliers to automatically compensate customers in several circumstances, removing the need for consumers to submit claims themselves.
Under the updated rules, providers must pay out when they fail to meet installation commitments or leave households waiting too long for appointments.
Thanks to this rule change, energy companies will be held more accountable if they miss installation targets or appointments, putting more power and money back into customers’ hands.
Households could get a £40 payment could see Britons receive a £40 payment
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These measures apply to meter installations across the entire United Kingdom, however, the £40 payment will only be awarded to households under specific circumstances.
Firstly, customers who find themselves waiting longer than six weeks for a smart meter appointment will be entitled to the payout.
Secondly, when an installation fails due to issues within the supplier’s control, households will receive the compensation.
The third qualifying circumstance occurs when an energy provider does not deliver a clear action plan within five working days after a customer reports a problem with their meter.
Thousands of households use smart meters | PA
“Energy Owls” actively manage their energy usage, check tariffs, and track their bills. | Uswitch
In each case, the money will be paid out automatically without customers needing to make a formal application or chase their supplier for the funds. Government statistics indicate that smart or advanced meters are now present in more than seven out of ten British homes.
Ofgem reports that over 900,000 faulty smart meters have been fixed or replaced since 2024; however, the energy regulator recognises that more needs to be done.
Melissa Giordano, the deputy director of systems and processes at Ofgem, said: “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. These new rules will set clear expectations of suppliers, drive better performance, and protect consumers when things go wrong.”
Ofgem has demanded action plans from suppliers
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GETTYGareth Kloet, an energy spokesperson at Go.Compare, said: “Smart meters can be very useful in helping keep track of gas and electricity usage, and many users even say that they’ve saved them money.
“However, for some, being able to watch their consumption and costs rise in real-time can be a source of stress, encouraging unhealthy behaviours.
“Our latest figures show that this, understandably, is particularly prevalent among those who are likely to be under more financial pressure, like those on lower incomes and younger age groups.
“It’s important to monitor your energy usage, but checking too often could create excessive worrying. If you feel you are becoming too preoccupied with checking your smart meter, or that you are excessively worrying about your energy consumption and paying bills, please reach out to your energy supplier, who can advise you.”