Ofgem drives forward plans for new and improved smart meter rules

Press release
Publication date

Topic

Consumer protection
Industry sector
Supply and Retail Market

New smart meter standards and more compensation for customers facing long wait times for installations or repairs are set to be introduced next year, under plans put forward by Ofgem today (Friday 8 August 2025).  

In March this year, the energy regulator announced plans to review its Guaranteed Standards of Performance (GSoPs). This included a new set of rules to improve the service offered by energy suppliers to customers that want a smart meter, which are now another step closer. Ofgem is proposing four new rules which mean consumers will receive automatic compensation: 

  • where a customer has to wait more than 6 weeks for a smart meter installation appointment 
  • for a failed smart meter installation due to a fault within the supplier’s control  
  • if a customer reports a problem with their smart meter, requiring suppliers to provide a resolution plan within five working days of the report 
  • for smart meters not operating in smart mode if not fixed within 90 days. 

Following an initial consultation, Ofgem has also confirmed it plans to extend the requirement for suppliers to offer compensation for smart meters not operating in smart mode, particularly those facing wider connectivity issues, meaning even more customers will benefit from the change.  

Alongside enhanced protections for households, microbusinesses will also benefit from greater smart meter rights and compensation when things go wrong under the new rules.  

This is part of Ofgem’s wider work to improve the smart meter experience by toughening up requirements and taking action against suppliers that don’t comply with its rules. Over the past year, Ofgem's compliance engagement has seen more than 600,000 previously non-operating smart meters repaired or replaced. 

This figure continues to rise, and Ofgem's new standards will further incentivise suppliers to install and repair smart meters as soon as possible or pay their customers compensation. 

Charlotte Friel, Director of Retail Pricing and Systems at Ofgem, said:   

“Millions of consumers rely on their smart meter every day for accurate billing, cheaper tariffs, automatic meter readings and real-time data to help keep track of spending.   

“But we know many customers that want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change. 

“We’re working closely with suppliers to drive improvement, and have seen more than 600,000 faulty smart meters reconnected since last July after we opened compliance engagement. This is only the beginning - with automatic compensation, faster fixes, and improved installation standards well on the way, getting a smart meter will be quicker and easier than ever.  

"These new rules are about setting clear expectations of suppliers, incentivising them to boost smart meter standards, and protecting consumers from poor service if things go wrong.” 

Minister for Energy Consumers 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.   

“That’s why the government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed.   

“This marks another step in our work to bring down bills for working people and rebuild consumers’ confidence in the energy sector.” 

According to the latest government data, 66 percent of homes in Britain have a smart or advanced meter, and more than 90 percent are working correctly. While the smart meter rollout is progressing quickly, Ofgem’s plans aim to further improve the service customers can expect and ensure that if things do go wrong, they are put right as quickly as possible, and customers are fairly compensated. 

The Guaranteed Standards of Performance were introduced by Ofgem to ensure that energy suppliers offer an appropriate level of service and compensation payments to customers when standards are not met.  

Suppliers are currently required to make an automatic payment of £40 to consumers if they fail to meet the minimum standards outlined in the Guaranteed Standards. This includes making and keeping appointments, investigating and fixing/replacing credit or prepayment meter faults, and switching supplier within five working days.   

Ofgem will now open a statutory consultation to seek feedback from stakeholders and aims to have the new proposed smart meter standards in place from early 2026.  

Notes to editors 

  • Smart meter policy and connectivity is led by the Department of Energy Security and Net Zero (DESNZ), as well as the smart meter Data Communications Company (DCC). 
  • Suppliers are responsible for providing meters that offer the best outcome for consumers and are set installation targets by the government. Ofgem is responsible for suppliers' compliance with their smart metering obligations. 
  • Last year Ofgem opened compliance engagement into six energy suppliers for not meeting their smart meter installation targets and for smart meters not operating in smart mode. 
  • This consultation links to Ofgem’s consumer confidence programme published in September 2024 which proposed the introduction of new smart meter Guaranteed Standards of Performance (GSoPs) regarding the installation and maintenance of smart meters.  
  • As part of this programme, Ofgem committed to undertaking a wider review of the Guaranteed Standards framework following its decision to increase the payment level to £40 from January 2025 to reflect inflation. 
  • In addition, the Department of Energy, Security and Net Zero (DESNZ) outlined in its Clean Power 2030 Action Plan its ambition for new GSoPs on smart metering.    
  • View the smart meter GSoP consultation. 
  • Alongside these changes, the regulator is also proposing to update wording of the rules to clarify that the 2015 regulations apply to smart meters, as well as traditional meters, to ensure customers can expect the best possible service from their supplier.