Ofgem confirmed in February 2026 that it will take forward new rules giving households a £40 automatic payment when they face problems with a smart meter installation, according to Changeworks1. The reforms, described by the government as "brought forward by Ofgem last month", cover issues such as delayed or failed installations2.
Under the confirmed standards, the £40 payment applies in three situations: where a household waits more than six weeks for an installation appointment; where an installation appointment fails due to a fault within the supplier's control; and where a customer reports a problem with their smart meter but the supplier does not provide a resolution plan within five working days of the report1. The government states that consumers are "now eligible for £40 in compensation if they face issues throughout the process of installing a smart meter"2.
The payment sits alongside separate obligations on repair times. Under standards announced on 10 March 2026, suppliers must take all reasonable steps to fix faulty smart meters as soon as possible and no longer than 90 days after being notified of the issue, or face action from the regulator which could include fines or legal action2. The government says 92 per cent of smart meters work as they should, but that many households have waited too long for meters not operating in smart mode to be fixed2.
"Consumers are also now eligible for £40 in compensation if they face issues throughout the process of installing a smart meter, such as delayed or failed installations, following reforms brought forward by Ofgem last month."
Suppliers will also be required to replace all smart meters still connected to 2G and 3G networks before those services are switched off by 20332. Almost 40 million households and small businesses across Britain already use smart meters, and households with smart meters saved an estimated £700 million on their bills in 2025, according to DESNZ analysis cited by the government2.
| Trigger | Payment |
|---|---|
| Wait of more than six weeks for an installation appointment | £40 |
| Installation appointment fails due to a fault within the supplier's control | £40 |
| Problem reported but no resolution plan within five working days | £40 |
Source: Changeworks1
Why it matters for households
A smart meter that does not operate in smart mode cannot send automatic readings, so a household may be back to submitting its own, or receiving estimated bills. The 90-day repair standard sets a limit on how long that can continue before the regulator can act2. The £40 payment is automatic under the confirmed rules, rather than something a household has to claim, and it applies at the installation stage as well as afterwards1.
For homes on off-peak tariffs, meter problems carry a further risk. Changeworks reports that some households moved off the Radio Teleswitch Service have found their energy prices higher after a smart meter replacement, in many cases because of backend billing errors, meter configuration issues or non-operating meters1. The same page notes that suppliers are obliged to complete an initial assessment of any smart meter fault, take appropriate action and offer an update within five working days, or the consumer receives compensation1.
The 2G and 3G replacement requirement matters for smart meter security and for continued remote reading, since meters on those networks will need exchanging before the networks close2. Households wanting to understand what a visit involves can read smart meter installation, and the wider obligations on suppliers are set out in smart meter rules and supplier obligations.
What happens next
The 90-day repair standard and the 2G and 3G replacement requirement were announced on 10 March 20262. The £40 payment rules were confirmed by Ofgem in February 20261. The government has not reported a commencement date for the repair standard, and no date has been reported for when the £40 payments began or will begin. The 2G and 3G switch-off deadline is 20332.
Where a household cannot resolve a problem with its supplier, Changeworks directs consumers to the Energy Ombudsman on 0333 300 16201. The routes available are covered in energy complaints and redress, and the regulator's remit is explained in Ofgem: what the energy regulator does.