Martin Lewis has said people need to be aware of these changes (Image: ITV)
The Labour Government has announced its findings and intentions after a review into smart meter performance across the UK. It has come up with three ‘rules’ that affect energy suppliers – and could see homes entitled to compensation.
The details were explained by Martin Lewis’ MoneySavingExpert (MSE) team, which found that three in five Brits who reported a problem with their smart meter to energy providers have waited more than three months for a fix. Issues with the device are likely to have a knock-on effect on energy bills.
Smart meters will usually send readings to your energy supplier automatically, rather than relying on households to send manual readings. This means your supplier can provide accurate bills, but if there is a problem sending readings, energy bills will be estimated.
Faulty readings from these devices can sometimes lead to bills being calculated as more than a household actually used. Citizen’s Advice states that people should contact their supplier as soon as possible if the smart meter isn’t working as it should.
As of early May 2026, new rules are coming into effect requiring suppliers to repair faulty meters within 90 days or face penalties. People may be eligible for £40 in compensation if a reported issue isn’t resolved in accordance with the new standards.
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On the MSE website, Martin Lewis said: “Broken smart meters were high on our list of issues we put to the Government when it came into power, so it is good to see some progress. Far too many smart meters, likely one in five, don’t work as they should – a problem not just for all the homes with broken ones, but for the smart meter rollout.
“With so many dissatisfied customers, word-of-mouth is bad, so people tell their friends and neighbours not to get one. We need to shift firms’ focus from just installing smart meters to promptly fixing those that are broken – not just meters that go into dumb mode, but crucially all elements, including in-home displays that stop working.
“That’s the aim of this plan, and while it’s taking a softer approach than we proposed, it is an improvement, and we’ll be monitoring to see if it delivers. I’m also happy the Government has taken up our suggestion of a Consumer Charter, giving people definite rights and timetabling, and I look forward to working with them to make sure consumers understand it when it launches.”
The rules are changing for anyone with a smart meter at home (Image: Getty)
What are these new rules going to be?
1) Your energy supplier will have up to 90 days to fix your faulty smart meter or face a penalty
If your smart meter isn’t sending readings to your supplier and isn’t fixed within 90 days of your supplier being made aware of the issue, it will now face enforcement action by energy regulator Ofgem. This could include fines or legal action. This won’t, however, include fixing broken in-home displays (the device that sits in your home and helps you monitor usage).
2) Energy suppliers will be required to submit plans to Ofgem showing two important things
The Government expects suppliers to begin taking action in 2026 to meet targets for smart meter installations and ensure these smart meters are working properly. Companies will also have to take ‘reasonable steps’ to complete the smart meter rollout by 2030.
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3) All smart meters that are still connected to 2G and 3G will need to be replaced
The Government is also developing a new ‘Consumer Charter’. This is aimed at clearly informing consumers of what they can expect from the new rules.
Until now, smart meter providers have only been fined if they fail to meet targets for installing new devices – which doesn’t take into account whether a meter is actually working, essentially disincentivising companies from fixing broken ones. The new rules announced on March 10 run alongside Ofgem’s new ‘Guaranteed Standards’ which introduced an automatic £40 compensation for consumers having problems with their smart meter or its installation as of February 23, 2026.
Under these new rules, people will be eligible for compensation if:
their smart meter installation appointment “fails” due to a “fault within the supplier’s control”.
they report an issue with their smart meter to the energy supplier, and it does not provide them with a “resolution plan” within five working days.