£40 compensation update as energy suppliers face new rules | UK | News
Cutting wait time to no more than 90 days so households can save money on bills (Image: Getty)
The government has announced tough new standards requiring energy suppliers to fix faulty smart meters within 90 days or face significant fines and penalties. The move, from the Department for Energy Security and Net Zero (DESNZ), is designed to protect consumers and ensure households can fully benefit from accurate energy monitoring and savings.
The new rules, introduced from today (March 10), build on recent reforms by Ofgem, which last month made consumers eligible for £40 in compensation if they face issues during the smart meter installation process, such as delayed or failed installations. According to DESNZ analysis, households with smart meters saved an estimated £700 million on their bills in 2025.
While an estimated 92% of smart meters operate correctly, many households have experienced long waiting times — sometimes several months — to have their smart meters repaired after they stop operating in “smart mode” and sending automatic readings.
Under the new obligations, suppliers must take all reasonable steps to fix the issue as soon as possible, with a strict maximum of 90 days from notification of the fault. Failure to comply could lead to action by the regulator, including enforcement notices and financial penalties.
In addition to the repair deadline, the DESNZ also introduced rules requiring suppliers to replace all smart meters that currently rely on 2G and 3G networks before those services are switched off by 2033. This ensures that the nearly 40 million smart meters in homes and small businesses across Britain remain functional as local networks transition to 4G services.
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Minister for Energy Consumers Martin McCluskey said: “Smart meters are already helping millions of people manage their energy use and save on bills. But we know far too many people can be waiting several months for their smart meter to be fixed – and losing money in the process.
“These new rules will put an end to this, making sure meters are fixed in good time – driving up standards, protecting
A statement on Gov.uk explains: “Suppliers are already required to take all reasonable steps to fix smart meters that are not working as they should. The obligations being introduced today will now provide a time frame within which suppliers must provide repairs – mandating that suppliers must take all reasonable steps to ensure that meters are fixed as soon as possible, and no longer than 90 days after they are notified of the issue. Failure to comply with these rules could result in the energy regulator putting companies on notice or enforcing fines.”
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Victoria Bacon, Smart Energy GB Director of Communications, said: “Considerable progress has been made in improving people’s experience of smart meters, with more than 9 in 10 now operating in smart mode and the latest data showing 85% of people are happy with their smart meter. The latest Citizens Advice-Ofgem Consumer Satisfaction Survey also shows satisfaction with smart meters rising steadily over the past two years.
“It’s important that people have a positive experience of smart meters. With over 70% of energy meters now smart, the new rules should reassure households and encourage more smart meter installations, giving people greater control over their energy use and access to a wider range of tariffs that can help save money.”
