Energy suppliers must make automatic compensation payments to consumers for breaches of three smart meter Guaranteed Standards of Performance (GSOPs) from 23 February 2026, Ofgem has confirmed. The standards were signed into legislation on 27 January 2026 through The Electricity and Gas (Standards of Performance) (Suppliers) (Amendment) Regulations 20261.
The three standards cover installation appointment availability, failed installations and the investigation of smart meter operational issues. Under GSOP 1, where a consumer requests a first time smart meter installation, the supplier must offer an appointment within six weeks of the request, otherwise compensation is payable. Ofgem amended the drafting to allow a 60-working day, or twelve-week, timeframe for first time smart meter appointments for microbusiness consumers. The standard applies to first time installations only, and where a supplier is unable to physically install a meter a timely appointment is not necessary1.
Under GSOP 2, a consumer receives compensation if an installation fails due to a fault within the supplier's control. This applies to all installation appointments, whether a first time installation or the replacement of an existing meter. Under GSOP 3, where a consumer reports a problem with their smart meter, the supplier must complete an initial assessment, take an appropriate action and offer to update the consumer within five working days, otherwise compensation is payable. Ofgem has introduced a new standalone regulation 5A covering the investigation of smart meters not operating as intended, applying to all smart meters including those in prepayment mode1.
"We have decided to implement GSOPs 1-3, with the Statutory Instrument signed on 27 January 2026, which brings the Statutory Instrument into legislation."
Ofgem has not taken a final decision on GSOP 4, which would have provided compensation where a smart meter is not operating in smart mode for over 90 days. The regulator said progress is required on newer technology such as 4G comms hubs, that Ministers have not confirmed the Department's final position on post 2025 smart meter policy, and that accountability mechanisms across suppliers and the DCC may need to be explored. Ofgem said it intends to take forward further work on GSOP 4 with a view to implementing it later this year1.
| Standard | Requirement | Consequence of breach |
|---|---|---|
| GSOP 1 | First time installation appointment offered within six weeks of request (twelve weeks for microbusiness first time appointments) | Compensation |
| GSOP 2 | Installation not failed due to a fault within the supplier's control | Compensation |
| GSOP 3 | Initial assessment, appropriate action and offer to update within five working days of a reported problem | Compensation |
Ofgem said that as of the end of September 2025, 70% of meters in Great Britain were smart or advanced meters, with 91.7% operating in smart mode. The remaining 8.3% operate in traditional mode, which Ofgem said may limit access to cheaper time of use tariffs or convenient top ups for prepayment customers1. The compensation amounts payable under each standard are not set out in the decision document.
Why it matters for households
The standards create an automatic route to payment where a supplier misses a defined service level on smart meter installation and faults, rather than requiring a householder to complain and pursue the supplier. For a home waiting on a first meter, the six-week appointment window sets a fixed point at which the supplier's failure triggers compensation. For a household whose meter has stopped working as intended, the five-working-day assessment window sets a similar point.
The decision leaves the largest gap in coverage unaddressed for now. GSOP 4 would have covered meters that remain outside smart mode for more than 90 days, the condition affecting 8.3% of meters in Great Britain. Households in that position have no automatic compensation route under the standards now in force. The rules sit within the wider framework of supplier obligations and guaranteed standards that apply across the retail market.
What happens next
Ofgem said it will monitor performance against the new standards from Q2 2026, and has committed to reviewing the GSOPs in Q1 2027. Further work on GSOP 4 is intended, with implementation possible later in 2026 subject to the issues Ofgem identified being resolved1.