HOUSEHOLDS with broken smart meters could get automatic compensation if the devices are not fixed within 90 days.
Proposals drawn up by energy regulator Ofgem could see customers compensated £40 if their provider fails to install or repair a device promptly.
Under government plans, three quarters of Brit households should have a smart meter installed by the end of 2025, but this target may not be met.
Just last year Ofgem began proceedings against six suppliers for not meeting their targets around the installation and repair of smart meters.
Smart meters automatically record gas and electricity consumption and send information to suppliers to ensure accurate billing.
The devices allow consumers to monitor their consumption and saves them from sending in manual readings.
They can also give customers access to cheaper, more flexible tariffs and off-peak discounts.
But, according to Uswitch.com, up to 3.5million of the smart meters installed are operating in “dumb” mode and not sending usage information to providers.
Under Ofgem’s proposed new rules, suppliers will need to offer customers an appointment to install a smart meter within six weeks of a request being made.
And, if a fault with an existing smart meter is reported, the provider will have to provide a resolution plan within five working days.
Compensation will then need to be paid if a smart meter installation fails due to a fault within the supplier’s control, or if a broken device is not fixed within 90 days.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”From TV to energy… tips to save you money on 7 bills that are going up in April” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6369356626112″ video_ids=”” width=”640px”]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.
“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.”
Energy suppliers will be required to make the £40 compensation payments automatically if they fail to meet the requirements.
Payments are already made if suppliers fail to meet other Ofgem Guaranteed Standards of Performance, which include making and keeping appointments, investigating and fixing/replacing credit or prepayment meter faults, and switching suppliers within five working days.
Ofgem said it couldn’t provide a timetable for the introduction of the new rules, adding that it provide a further update in due course.
This week has also seen a warning made to consumers with Radio Teleswitch Signal (RTS) meters to urgently contact their providers ahead of the service being switched off.
Accurately monitoring energy usage will be even more crucial for consumers when the energy price cap goes up on Tuesday April 1.
Ofgem has confirmed that the average dual fuel bill for those not on a fixed deal will rise from its current level of £1,738 a year to £1,849.
This is an increase for the average household of £111 a year, or £9.25 a month.
It is the third consecutive quarter to see an energy price increase for around 22million households on standard variable tariffs (SVTs).
The figure is £159 per year higher than the price cap set for the same period last year, but £531 lower than at the height of the energy crisis in early 2023.
The changes come amid what’s been dubbed ‘awful April’ with the month potentially set to see consumers faced with annual bill increases of almost £700.
But, if you’re struggling with costs take action as thousands of households could be missing out on free boilers and energy bill discounts.