Energy customers could soon be handed £40 automatically if their supplier fails to meet tougher service standards.
The changes come as the regulator Ofgem brings in updated Guaranteed Standards of Performance from February.
Customers of major firms including British Gas, Octopus Energy, EDF Energy and OVO Energy will be covered.
The watchdog says the aim is to speed up installations and repairs while ensuring people are compensated when things go wrong.
Under the new rules, households will receive £40 automatically if they wait more than six weeks for a smart meter installation appointment.
The same payment applies if an appointment fails because of a fault within the supplier’s control.
Customers are also due the compensation if they report a problem with their meter but are not given a resolution plan within five working days.
Ofgem first signalled last March that it wanted to overhaul the standards as part of a wider push to improve the smart meter experience.
British Gas, Octopus, EDF and OVO customers in line for £40 boost under new rule
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GETTYMillions of homes now rely on the devices for automatic readings and to track usage in real time.
Since 2024, the regulator’s compliance work has already helped restore more than 900,000 meters that had stopped operating in smart mode.
Officials say the total continues to rise, and the new approach should encourage firms to fix issues quickly or pay up.
Melissa Giordano, deputy director of systems and processes at Ofgem, said: “Smart meters offer customers accurate bills, cheaper tariffs, and real-time energy use tracking.
The new rules will set clear expectations of suppliers and drive better performance
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GETTY“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.”
Energy Consumers Minister Miatta Fahnbulleh said: “Consumers are at the heart of our mission to deliver an energy retail market that works for everyone, as we accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes.
Households will receive £40 automatically if they wait more than six weeks for a smart meter installation appointment
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GETTY“That’s why the Government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.”
The move comes as bills remain under pressure. The energy price cap for January to March 2026 stands at about £1,758 a year for a typical household and is reviewed every three months.
For customers facing delays, the message is simple: if standards slip, compensation should follow automatically.