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Smart Meter Compensation: Automatic £40 Payouts Proposed for Households with Faulty Devices
Homeowners with malfunctioning smart meters will automatically receive £40 in compensation from their energy supplier if repairs are not completed within 90 days. These new regulations are being proposed by Ofgem, the energy regulator.
Consumers will also be entitled to a payout if a smart meter installation fails due to issues within the energy provider’s control.
The UK’s nationwide smart meter deployment aims to equip three-quarters of all residences with smart meters by the year’s end.
These devices are intended to provide real-time energy consumption data to users and directly transmit meter readings to suppliers, eliminating the need for manual submissions.
However, the rollout has encountered numerous difficulties and delays.
Official figures reveal a concerning statistic: approximately 3.5 million smart meters are currently operating in a “dumb” mode, having lost their capability to transmit energy usage data.
Compensation is now available if your smart meter malfunctions and repairs are delayed.
Extended Wait Times for Smart Meter Repairs
Often, households endure prolonged waiting periods, sometimes weeks, for their energy supplier to repair reported smart meter malfunctions.
Research conducted by Uswitch, a comparison service, in November indicated that as many as 1.4 million households have experienced repair delays of six months or more.
Ofgem Introduces New Rules to Enhance Standards
Ofgem is now introducing revised rules aimed at enhancing service standards and compensation for consumers.
Under the proposed regulations, energy providers will be required to offer customers a new meter installation within six weeks of a request.
Furthermore, suppliers will be mandated to furnish a resolution plan within five working days of a customer reporting a smart meter problem.
“Drawing the Line on Excuses” – Ofgem Director
Tim Jarvis, Director General for Markets at Ofgem, stated, “We’re setting firm expectations – suppliers must adhere to our new rules or provide compensation to their customers.”
He further commented, “We acknowledge that numerous customers are still experiencing excessive delays in smart meter installations or encountering extended repair times when meters cease to function.”
“Therefore, we are intervening to expedite and simplify the process for consumers and ensure fair compensation when issues arise.”
Building Upon Existing Guaranteed Standards
Energy suppliers are already obligated to issue automatic £40 payments to customers for service failures under Ofgem’s Guaranteed Standards of Performance.
These existing standards cover areas such as appointment scheduling and adherence, resolving prepayment meter faults, and ensuring supplier switching within five working days.
If the newly proposed smart meter regulations are implemented, they will be incorporated into the existing Guaranteed Standards framework.