Ofgem has decided to implement three new smart meter Guaranteed Standards of Performance, with the Statutory Instrument signed on 27 January 2026 and consumer compensation commencing from 23 February 20261. The decision follows a consultation published on 28 March 2025 proposing four new standards covering the installation and operation of smart meters1.
The three standards now in legislation are GSOP 1, on installation appointment availability; GSOP 2, on failed installations; and GSOP 3, on investigating smart meter operational issues1. Under GSOP 1, a supplier must offer a first-time installation appointment within six weeks of a request, or the consumer receives compensation1. GSOP 2 covers installations that fail due to a fault within the supplier's control, and applies to all installation appointments, whether first-time or replacement1. GSOP 3 requires a supplier to complete an initial assessment, take an appropriate action and offer to update the consumer within five working days of a reported problem1.
Ofgem has not taken a final decision on GSOP 4, which would have covered smart meters not operating in smart mode for more than 90 days1. It said it intends further work on that standard, with a view to implementing it later in 2026 subject to resolving accountability, technical and regulatory issues1.
"We have decided to implement GSOPs 1-3, with the Statutory Instrument signed on 27 January 2026, which brings the Statutory Instrument into legislation."
The final Impact Assessment puts redress for GSOPs 1-3 at £19.7 million, with £6.7 million in set-up costs and £3.7 million in annual ongoing costs2. It states that the retail price cap provides no mechanism for suppliers to recover compensation payments from the wider consumer base2. An earlier draft Impact Assessment, covering all four proposed standards, had estimated redress at £117 million, set-up costs of £26 million and annual costs of £9 million3. Ofgem's final decision document records that 70% of meters in Great Britain were smart or advanced as of the end of September 2025, with 91.7% operating in smart mode1.
| Standard | Requirement | Applies to |
|---|---|---|
| GSOP 1 | Appointment offered within six weeks of request | First-time smart meter installations |
| GSOP 2 | Compensation if installation fails due to supplier-controlled fault | All installation appointments |
| GSOP 3 | Initial assessment, action and offer to update within five working days | Reported smart meter operational issues |
Ofgem has amended the regulation to allow a 60-working day, or twelve-week, timeframe for first-time smart meter appointments for microbusiness consumers, and has made clear that in-home display related issues do not apply to microbusiness consumers1. A new standalone regulation 5A covers investigation of smart meters not operating as intended, applying to all smart meters including those in prepayment mode1.
Why it matters for households
The standards create an automatic compensation route where a supplier misses a defined deadline, rather than leaving a household to pursue a complaint. For a home waiting on a first installation, the six-week appointment requirement sets a measurable limit on delay. For a home whose meter has stopped communicating or reporting correctly, the five-working-day assessment requirement sets a limit on how long a reported fault can sit without action. The smart meter guaranteed standards now in force sit alongside existing supplier obligations and the wider Ofgem framework.
The gap left by the deferral of GSOP 4 concerns meters that remain installed but are not operating in smart mode. Ofgem's own figures show 8.3% of meters in that category at the end of September 20251. A meter in traditional mode may limit access to time-of-use tariffs and, for prepayment customers, convenient top-ups1. Households in that position have no automatic compensation route under the standards commencing in February 2026.
What happens next
Ofgem will monitor performance against the new standards from Q2 2026 and has committed to reviewing them in Q1 20271. A decision on GSOP 4 is expected in the latter half of 20261.
Sources3 cited
- Supplier Guaranteed Standards of Performance: Final Decision on smart meter Guaranteed Standards, ofgem.gov.uk
- Smart meter Guaranteed Standards – Supplier Guaranteed Standards of Performance: Impact Assessment GSOPs 1-3, ofgem.gov.uk
- Smart meter Guaranteed Standards - Supplier Guaranteed Standards of Performance Draft Impact Assessment (IA), ofgem.gov.uk