Frustrated with smart meter issues? You're not alone, and there's finally some good news. Starting today, new rules mean you could be automatically compensated for certain smart meter problems – but there's a catch. While you might get £40 for delays or installation failures, meters that have gone 'dumb' and stopped sending readings are still left in the dark. But here's where it gets controversial: why are energy firms only now being held accountable for these issues, and why isn't the compensation more comprehensive? Let's dive in.
MSE News
Abby Wilson
News & Investigations Reporter
23 February 2026
Smart meters were supposed to revolutionize how we manage energy, but for many, they've become a source of endless headaches. From installation delays to meters that simply stop working, the problems are widespread. And this is the part most people miss: the new compensation rules, effective today, only cover specific issues, leaving a significant gap for those whose meters have gone 'dumb.'
What’s Covered Under the New Rules?
For problems arising on or after 23 February 2026, you’re eligible for £40 in automatic compensation per issue if:
You wait more than six weeks for a smart meter installation appointment – but only for new installations, not repairs or replacements. This means if you’re upgrading to a smart meter for the first time, delays could put money back in your pocket.
Your installation appointment fails due to the supplier’s fault. For instance, if the engineer lacks the right skills, equipment, or safety gear, the supplier is on the hook. It’s a step toward holding companies accountable for poor preparation.
Your supplier fails to provide a resolution plan within five working days after you report an issue. This plan should detail how they’re assessing and fixing the problem, whether it’s with the meter itself or the in-home display (IHD).
What’s Not Covered?
Here’s the kicker: if your smart meter has gone 'dumb' – meaning it’s no longer sending readings to your supplier – you won’t get compensated... yet. Ofgem initially proposed a £40 payout for meters that remain 'dumb' for over 90 days, but this rule has been delayed. The regulator claims it’s still working on it, pending the Government’s review of smart meter performance standards. Is this delay fair to consumers, or is it another example of energy firms getting a free pass?
How Does Compensation Work?
If you’re owed compensation, your supplier must pay it within 10 working days – no need to lift a finger. The payment can be credited to your energy account or deposited directly into your bank account. Missed the deadline? You could get an extra £40, though this only applies once per incident. If you think you’re eligible but haven’t received anything, follow these steps:
- Contact your supplier and reference Ofgem’s 'Guaranteed Standards of Performance' to assert your rights.
- File a formal complaint if they don’t resolve the issue. Tools like Resolver can help track your progress.
- Escalate to the Energy Ombudsman as a last resort if your complaint remains unresolved after eight weeks.
The Bigger Picture: Why Smart Meters Go 'Dumb'
The Government estimates that around 10% of smart meters malfunction, but our research suggests the number could be as high as one in five. Why the discrepancy? Energy firms were previously fined only for missing installation targets, not for fixing broken meters. This created a perverse incentive to prioritize quantity over quality. MoneySavingExpert.com founder Martin Lewis addressed this in a 2024 letter to Energy Secretary Ed Miliband, urging a shift in focus.
Martin Lewis, MSE Founder & Chair
“Broken smart meters aren’t just a nuisance for individual households; they’re a stain on the entire smart meter rollout. When one in five meters doesn’t work, word spreads fast. People tell their neighbors to avoid them, slowing down progress. We need firms to fix broken meters promptly, not just those in 'dumb' mode but also in-home displays. While the new rules are a step forward, they’re not as robust as we’d hoped. We’ll be watching closely to see if they deliver.”
What’s Next?
Ofgem plans to review these policies in early 2027 to ensure they’re benefiting consumers. Meanwhile, the Government’s Consumer Charter, championed by Martin Lewis, aims to give people clearer rights and timelines. But is this enough? With so many meters still failing, should compensation be expanded to cover all malfunctions? And why are energy firms still allowed to prioritize installations over repairs?
Your Turn: What Do You Think?
Are the new compensation rules a fair deal, or do they fall short? Should energy firms be held more accountable for broken meters? Share your thoughts in the comments – let’s spark a conversation that could drive real change.
