Customers of all major energy suppliers, including big names like British Gas, Octopus, EDF and OVO, will be able to automatically qualify for a £40 payment under a new rule.

From February, tougher smart meter rules rolled out by Ofgem will give more compensation for customers facing long wait times for installations or repairs. The energy regulator announced plans to review its Guaranteed Standards of Performance last March, including a new set of rules to improve the service energy suppliers offer to customers who want a smart meter installed. The new Guaranteed Standards, which take effect this month, aim to support the smart meter rollout and deliver “better outcomes” for consumers by tightening requirements and taking steps to drive up supplier performance.

Under the new rules, customers will now automatically receive a £40 when:

Since 2024, Ofgem’s compliance engagement has seen more than 900,000 previously non-operating smart meters repaired or replaced.

According to the regulator this figure continues to rise and the new standards will further incentivise suppliers to install and repair smart meters as soon as possible or pay their customers compensation.

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.

“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.”

Latest government data shows more than 70% of homes in Britain now have a smart or advanced meter, and over 90% are working correctly.

Ofgem said it is committed to ensuring consumers with smart meters receive a high standard of service from installation to long term meter operation in smart mode, and automatic compensation is a powerful way to incentivise suppliers to ensure smart meters are working properly, and to fix issues quickly.

As such, Ofgem said it intends to take forward further work which covers compensation when smart meters aren’t operating in smart mode and remain unfixed after 90 days, with a view to implementing it later this year.

Currently, suppliers are now required to make an automatic payment of £40 to consumers if they fail to meet the minimum standards outlined in Ofgem’s Guaranteed Standards, including making and keeping appointments, investigating and fixing/replacing credit or prepayment meter faults, and switching supplier within five working days.

This will be implemented from February 2026 and Ofgem has committed to reviewing these standards in early 2027 to ensure they are driving the right outcomes for consumers.