Proposals from Ofgem could see customers compensated £40 if their provider fails to install or repair a device promptly.Proposals from Ofgem could see customers compensated £40 if their provider fails to install or repair a device promptly.Proposals from Ofgem could see customers compensated £40 if their provider fails to install or repair a device promptly.

Households with broken smart meters are set to get an automatic £40 compensation. Proposals from Ofgem could see customers compensated £40 if their provider fails to install or repair a device promptly.

Three quarters of Brit households should have a smart meter installed by the end of 2025, but this target may not be met.. And according to Uswitch.com, up to 3.5million of the smart meters installed are operating in “dumb” mode.

Tim Jarvis, director general for markets at Ofgem, said: “We know that many customers are still waiting too long to get a smart meter installed or facing lengthy delays on repairs when it stops working.

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“That’s why we’re stepping in to make the process quicker and easier for consumers, and to make sure they’re fairly compensated if things do go wrong.

“If a customer wants a smart meter, it’s vital suppliers offer them as soon as possible and that they work in smart mode from the get-go. We’re drawing the line on excuses – suppliers will need to follow our new rules or compensate their customers.”

Geoffrey Clifton-Brown, the chair of the PAC, called on the government to take action to shield the most vulnerable from future energy price shocks while permanently lowering costs for all households.

“If past years have taught us anything, it is that volatility is the new normal,” Clifton-Brown said. “The geopolitical outlook remains uncertain, and energy demand is heating up at the same time as we pivot towards greater reliance on renewables.”

Martin Lewis, the 52-year-old founder of Money Saving Expert, and BBC and ITV star, has told ministers that research by his website suggests that about 20% of home smart meters are not working properly.

“Repairs are slow, if they happen at all, as resources are focused on installs, leaving consumers frustrated and at risk of mis-billing and further problems,” Lewis said in a letter to Ed Miliband, the energy secretary.