- Ofgem has now opened a statutory consultation to seek stakeholder feedback
- Sixty-six per cent of homes in Britain have a smart or advanced meter
- In March this year, the energy regulator announced it would review its Guaranteed Standards of Performance
Ofgem has unveiled plans that will see customers who have to wait a long time for their smart meters to be installed or repaired get more compensation.
The update follows an announcement in March this year when the energy regulator said it would review its Guaranteed Standards of Performance, which set out new rules to improve the service.
Not following the below rules mean consumers will receive automatic compensation:
- Where a customer has to wait more than six 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 solution plan within five working days of the report
- For smart meters not operating in smart mode if not fixed within 90 days
The energy regulator confirmed in the initial consultation that it plans to extend the requirements for suppliers to offer compensation in these cases, and as a result, more will benefit from the changes.
Charlotte Friel, director of retail pricing and systems, Ofgem said that alongside enhanced protections for households, microbusinesses will also benefit from greater rights and compensation.
The news is part of Ofgem’s wider work to improve smart meters for consumers by reviewing standards and taking action against suppliers that don’t comply with its rules.
According to the latest government data, 66% of homes in Britain have a smart or advanced meter and more than 90% are working correctly.
Friel said that over the past year, Ofgem’s compliance engagement has seen more than 600,000 previously non-operating smart meters repaired or replaced, and the figures continue to rise.
“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,” she said.
“But we know that 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”.
Miatta Fahnbulleh, minister for energy consumers, said this action will help deliver an energy retail market that works for everyone and help the UK accelerate towards a clean, homegrown power system to protect households against global fossil fuel price spikes.
“This is why the government is taking action, alongside Ofgem, to ensure families are better protected when they get a smart meter installed,” she said.
“This marks another step in our work to bring down bills for working people and rebuild consumers’ confidence in the energy sector.”
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 only required to give an automatic payment of £40 if they fail to meet these standards, including making and keeping appointments, investigating and fixing/replacing credit or prepayment meter faults, and switching supplier within five working days.
Ofgem has now opened a statutory consultation to seek stakeholder feedback and aims to have the new standards in place early next year.
