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Tougher smart meter standards needed says Ofgem

Regulator wants a maximum 6 week installation date and compensation for poor service

Ofgem has announced plans to crack down on poor smart meter service, proposing new rules to slash wait times for installations and fast-track repairs.

The regulator aims to ensure energy suppliers deliver a better service to customers and compensate those facing delays or faulty meters.

The energy watchdog is reviewing its Guaranteed Standards of Performance, which dictate the minimum level of service suppliers must provide.

Under the proposed changes, customers could receive compensation if their supplier fails to offer a timely smart meter installation or does not promptly address issues with their device.

One of the key proposals is to reduce waiting times for smart meter installation appointments.

If approved, energy companies will be required to offer an appointment within six weeks of a request, preventing customers from being left waiting months for a new meter.

Suppliers would also be obligated to compensate customers if an installation fails due to a fault within their control.

For those who experience problems with an existing smart meter, the rules would ensure suppliers provide a resolution plan within five working days of a customer reporting an issue.

Additionally, if a smart meter is not operating in smart mode, suppliers will be required to fix the problem within 90 days or pay compensation.

Ofgem is also considering extending these protections to business customers eligible for a smart meter, ensuring that non-domestic users receive the same level of service as households.

This would involve updating current metering rules to cover smart meters explicitly, reflecting the increasing reliance on digital technology in the energy sector.

Background

The Guaranteed Standards framework was introduced to ensure customers receive a fair level of service and compensation when suppliers fail to meet expectations.

Currently, suppliers must pay £40 automatically if they do not meet key obligations, including keeping appointments, fixing credit or prepayment meter faults, and completing a switch to another supplier within five working days.

The proposed changes would enhance these protections, making suppliers more accountable for poor service.

The review forms part of Ofgem’s wider Consumer Confidence programme, which aims to improve customer service in the energy sector as it transitions towards net zero.

The regulator is committed to ensuring customers, particularly those in vulnerable situations, are not left struggling with faulty meters or long delays.

Earlier this year, Ofgem confirmed that compensation payments under the Guaranteed Standards had increased from £30 to £40, reflecting inflation and ensuring consumers are fairly reimbursed when things go wrong.

The latest proposals continue this effort to strengthen customer rights and improve service standards across the industry.

We know that many customers are still waiting too long to get a smart meter installed or facing lengthy delays on repairs when it stops working.  

“That’s why we’re stepping in to make the process quicker and easier for consumers, and to make sure they’re fairly compensated if things do go wrong. 

Tim Jarvis, Ofgem

Rollout continues

Government data shows that 66 percent of British homes now have a smart or advanced meter, with over 90 percent functioning correctly.

While the rollout has been progressing steadily, Ofgem believes further improvements are necessary to guarantee smart meters operate as intended and customers receive the service they expect.

The regulator has launched a consultation on the proposals, inviting feedback from industry stakeholders and consumer groups before finalising the new rules.

If implemented, the changes would mark a significant step towards improving reliability, reducing waiting times, and ensuring customers are not left out of pocket when problems arise.

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