Households with smart meters can get new £40 payments in February | Personal Finance | Finance

Brits have been warned about new regulations that could result in them receiving £40 in compensation payments. According to energy regulator Ofgem, over 70% of British households have a  smart or advanced meter.

More than 90% are functioning correctly. However, where they aren’t, new powers coming into effect later this month will enable people to claim compensation. The issue was discussed on BBC Morning Live this week. Consumer reporter Holly Hamilton appeared on the programme to clarify the forthcoming changes with hosts Gethin Jones and Louise Minchin. Consumer expert and regular BBC Morning Live contributor Holly Hamilton outlined what was happening this month. She stated: “Smart meters feel like the new potholes, because we are talking about this all the time. So many people have issues with this. But yes, a little bit of good news because the energy regulator, Ofgem, is really trying hard to clamp down on this. So they are saying that this new rule that’s coming in could mean compensation for those who’ve been affected.

“We’re talking about £40 compensation to be exact. This is really important for anyone who’s been waiting a long time to get a fix, or even to get in touch with the energy company in the first place.”

Households had been safeguarded over standards under existing regulations. However, the compensation aspect is new.

Holly explained: “The fact that they should be up to a certain standard, that’s not new. Because Ofgem has a particular set of rules in place – the Guaranteed Standards of Performance that all energy suppliers have to adhere to. They have to offer this basic decent level of service.

“But now if they don’t, then you are entitled to compensation. And what’s new here is that the rules have been strengthened, okay? So it means that you should automatically get this payment. You shouldn’t have to go looking for it. And there are certain reasons that you get this.”

How the new Ofgem smart meter regulations will work “First of all, if you’ve waited for more than six weeks for an installation, or maybe an installation appointment has been cancelled because of a fault with the supplier,” 

Holly said. “Or if you’ve reported a problem with your smart meter and the supplier doesn’t give you a plan to fix it within five working days.

“That’s the most common one – people’s smart meters break and they can’t even get a sign that somebody’s going to come out and look at it in a reasonable amount of time. So like I say, the payment should be automatic.

“That’s really important here, so you shouldn’t have to chase it. It’s not retrospective, so they’ve got a matter of days then to fix it if they do swoop in at the final hour. Either way, it’s a win-win.

“It comes into force on February 23. And the idea is just to give that little nudge that I think the energy suppliers do need to try to get these smart meters fixed, to get the problems all sorted. We know that it’s affecting a lot of people; we see it in the emails all the time.”

Ofgem states its new Guaranteed Standards will support a smart meter rollout across the UK to “provide better outcomes for consumers”. The regulator explains that the measures form part of its broader work to enhance the smart meter experience of ordinary Britons by strengthening requirements – and taking action to improve the performance of firms.

Melissa Giordano, Deputy Director of Systems and Processes at Ofgem stated: “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.”