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Ofgem Mandates £40 Compensation for Delayed and Faulty Smart Meters

Designed to compel suppliers to meet service standards, the framework aims to rebuild trust in a rollout beset by devices that often cannot transmit readings.

Overview

  • Ofgem has finalised binding rules requiring £40 payouts for installations delayed beyond six weeks or smart meters left unrepaired for over 90 days.
  • The compensation scheme now covers meters operating in “dumb” mode due to connectivity failures and includes protections for micro-businesses.
  • Suppliers must implement the standards from early 2026 under threat of enforcement action if they miss installation or repair targets.
  • Since July 2024, the regulator has driven the repair or replacement of more than 600,000 faulty smart meters as part of its crackdown.
  • Government figures show about 3.4 million meters still fail to send automatic readings, highlighting the urgency of the new rules.