What are the new smart meter rules that could see you compensated?

The energy regulator, Ofgem, is rolling out tougher smart meter rules to give you more protection and better service from your energy supplier.

What’s a smart meter?

A smart meter is a digital device that automatically records how much gas and electricity you use and sends this information directly to your energy supplier.

It means you don’t need to take meter readings yourself or submit them manually. Your bills should be more accurate too, as they’ll be based on real usage rather than estimates.

You’ll also get an in-home display that shows how much energy you’re using in near real time and how much it’s costing you. This makes it easier for you to spot energy-hungry habits, make small changes, and potentially save money.

What are the new rules?

Under the new rules, you’ll automatically receive £40 compensation if:

• you have to wait more than six weeks for a smart meter installation appointment
• your smart meter installation appointment fails because of a problem within your supplier’s control
• you report a problem with your smart meter, but your supplier doesn’t give you a resolution plan within five working days

You won’t need to chase this payment, as it should be paid to you automatically.

Why are these rules being introduced?

The changes follow regulatory action that has already led suppliers to repair or replace 900,000 non-working smart meters.

Last March, Ofgem announced a review of its Guaranteed Standards of Performance. These standards exist to make sure you receive a reasonable level of service and compensation when that service falls short.

The updated rules now specifically cover smart meters, setting clearer expectations for suppliers and giving you stronger protection when things go wrong. They’re part of Ofgem’s wider push to improve your overall smart meter experience and hold suppliers to account.

When do the new rules start?

The new smart meter standards, including more compensation for long waits and failed repairs, will come into effect from February 2026.

Melissa Giordano, deputy director of systems and processes at Ofgem explained how 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,” she said.

Benefits of smart meters

There are several advantages if you switch to a smart meter:

• you’re only billed for the energy you actually use
• you don’t need to submit meter readings
• you can see your energy use in near real time
• you can identify which appliances use the most energy

Downsides to be aware of

If you’re worried about being moved onto prepayment, you may want to think carefully. Once you have a smart meter, your energy supplier can switch it to prepayment mode without your agreement and without anyone needing to visit your home.

How to get a smart meter

If you want a smart meter, contact your energy supplier directly. They’ll arrange the installation free of charge at a date and time that works for you.

The installation usually takes one to two hours, and the engineer will show you how to use the in-home display before they leave.

What to do if you’re struggling to pay your energy bills

If you’re struggling to keep up with energy costs, contact your supplier. 

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register for extra support.

Try to save energy

Small steps such as turning down your thermostat by one degree, not overfilling the kettle and bleeding your radiators could help you cut your energy usage - and in turn, bring your bills down.

We’ve put together a list of 50 smart energy-saving tips to help you get started.