NEWS

On February 23rd 2026, tougher service standards for smart meters came into force in the UK. Ofgem has extended the Guaranteed Standards of Performance (GSOPs) to cover smart meter installations and faults. For the first time, energy suppliers must compensate customers automatically when certain problems occur.

Under the new rules, customers will receive £40 compensation if suppliers fail to meet specific service expectations. The changes cover installation delays, missed appointments, and how suppliers handle faults once they’re reported.

This marks an important step in the development of the smart meter programme. The early years focused on getting meters installed. The latest rules focus on what happens afterwards. Installation alone is no longer enough. Meters must also work properly, and suppliers must respond quickly when they do not.

In this article, we’ll examine the new rules in more detail. Let’s get started.

New rules

The updated standards require energy suppliers to pay compensation automatically when smart meter services fall below defined levels. Customers do not even need to make a claim to receive it.

The specific faults that trigger payment are:

• A customer waits more than six weeks for a smart meter installation after requesting one
• An installation appointment fails due to a supplier error
• A supplier does not provide a resolution plan within five working days after a smart meter problem is reported

Each of these situations entitles the customer to a £40 payment. 

The resolution plan requirement introduces a clear new expectation. When a fault is reported, suppliers must quickly explain how they are investigating the issue and what steps they will take to fix it. The plan must cover the meter itself and related equipment such as the in-home display.

These requirements sit within the existing GSOP framework. The standards already require suppliers to compensate customers in the event of certain service failures. Since February 2026, smart meter services are included within that framework. Suppliers now face a direct financial consequence when installations are delayed or faults are not handled quickly.

Solving the problems

Consumers and energy suppliers benefit from smart meters. Customers no longer need to submit manual meter readings, and their bills become more accurate, while suppliers receive more reliable data to manage their networks more effectively. 

However, problems can still arise. Installations may be delayed. Appointments sometimes fail because of supplier errors. Faults can also occur after installation. When that happens, customers expect the problem to be addressed quickly.

Another issue highlighted in the discussion around the new rules is when smart meters stop sending readings automatically. It’s known as ‘going dumb’. In this situation, the device continues to measure energy use but behaves like a traditional meter. Customers may then have to provide readings manually again. This is pertinent because ‘going dumb’ is not included on the list of faults that trigger a compensation payment.

These situations undermine the main benefits of smart metering. They also affect consumer confidence in the system. The new standards focus directly on this experience. They create a clear expectation that suppliers must communicate quickly and manage faults effectively once they occur.

Regulatory shift

The introduction of compensation rules for smart meter services reflects a wider change in regulatory priorities. In the early stages of the rollout, policy centred on increasing the number of installed meters. Deployment targets dominated the conversation. Installation volumes were the main measure of progress.

The latest rules signal a different emphasis. The regulator now places greater weight on how well the system works in everyday use. Service quality and operational performance are becoming more important indicators of success. Installation remains necessary, but the focus has expanded to include reliability, responsiveness and the customer experience.

Future changes could reinforce that direction. Ofgem has discussed further rules that would compensate customers if suppliers fail to repair meters that stop working properly within a defined timeframe. Together, these developments show how the rollout is evolving. As the installed base grows, ensuring that meters function correctly becomes just as important as adding new devices.

Looking ahead

Stronger service standards are a sensible step. Customers should expect a smart meter to be installed on time and to work properly. When faults occur, suppliers should respond quickly and explain how they will resolve them.

However, the new rules also highlight a wider tension in policy. The government continues to encourage higher numbers of smart meter installations, particularly SMETS2 meters. At the same time, the tougher standards require suppliers to spend more time and resources on each installation and on resolving faults when they arise. 

The UK already has a large installed base of smart meters generating valuable data for the energy system. Rather than pushing for full coverage as quickly as possible, policy could shift toward maintaining the network that already exists. Meters should be replaced when they reach the end of their functional life. Until then, the priority should be keeping them operating reliably.

The new GSOP rules point in the right direction. The next stage of the smart meter programme should build on that shift. The focus should be on quality and performance across the system, not simply the number of meters installed.