- The proposed rules include shorter wait times and compensation for failed installations
- The rules are part of Ofgem’s Guaranteed Standard of Performance
- Ofgem is also consulting on new ways to ensure for better protections
Ofgem has set out new rules in a bid to boost smart meter standards and compensation, including slashing waiting times for installations, repairs and compensation for customers with connectivity issues.
The proposals are part of its plans to review its Guaranteed Standards of Performance and will see customers compensated if a supplier fails to offer a smart meter installation appointment or take swift action to rectify any issues reported..
More specifically, the proposals are:
- Shorter wait times for smart meter installation appointments, so customers requesting a new meter are offered an appointment within six weeks
- Compensation for a failed smart meter installation due to a fault within the supplier’s control
- Quicker fixes if a customer reports a problem with their smart meter, requiring suppliers to provide a resolution plan within five working days of the report
- Compensation for smart meters not operating in smart mode if not fixed within 90 days.
Tim Jarvis, director general for markets, Ofgem, said the regulator is also consulting on new ways to ensure better protections for smart meter and business customers.
Jarvis said this could include applying the proposed standards to business customers eligible for a smart meter, as well as domestic customers, alongside updating its current metering rules to ensure they also cover smart meters.
Describing smart meters as “the next generation of electricity meters”, Jarvis said millions of households are “already taking advantage of the benefits they can offer”.
This includes unlocking cheaper and more flexible tariffs, automatic meter readings and real-time data to help accurately keep track of spending.
“But we know that many are still waiting too long to get a smart meter installed or facing lengthy delays on repairs when it stops working,” Jarvis explained. “That’s why we’re stepping to make the process quicker and easier for consumers.”
According to the latest government data, 66% of homes in Britain now own a smart or advanced meter and more than 90% are working correctly.
While the smart meter rollout is progressing quickly, the regulator’s plans aim to further improve the service customers can expect, and ensure they work as intended.
Guaranteed Standards were introduced by Ofgem to ensure energy suppliers offer an appropriate level of service and compensation payment to customers when standards are not met.
Suppliers are currently required to make an automatic payment of £40 to consumers if they fail to meet the minimum standards outlined in the Guaranteed Standards. This includes making and keeping appointments, investigating and fixing or replacing credit or prepayment meter faults, and switching suppliers within five working days.
The plans follow the regulator’s commitment to reviewing the Guaranteed Standards, as part of its Consumer Confidence program, according to Jarvis.
The program sets out a vision to deliver five-star customer service, fit for an “increasingly complex market” transitioning towards net zero and ensure good outcomes for consumers in vulnerable situations.
Earlier this year, Ofgem increased the Guaranteed Standard compensation level from £30 to £40 in line with inflation, so customers are fairly compensated when things go wrong.
Miatta Fahnbulleh, minister for energy consumers, said that smart meters can help households “gain control of their energy usage and save money on their bills” and that the government wants to “make sure consumers feel the benefits of having one installed”.
“A crucial part of that will be improving the smart meter customer experience, so we welcome Ofgem’s proposals to introduce guaranteed standards of performance for smart meters,” Fahnbulleh explained.
