Alongside this compensation scheme, households supplied by major providers including Octopus Energy, British Gas and EDF face a new mandatory repair framework.

Suppliers must now resolve faulty smart meter issues within a maximum of 90 days or risk enforcement action from the regulator.

Companies that breach these standards could face financial penalties or legal proceedings, marking a significant tightening of consumer protections in the energy sector.

The vast majority of smart meters function correctly, with 92 per cent operating as intended according to government figures.

However, a significant number of households have encountered difficulties when their devices stop working in smart mode, preventing automatic readings from being transmitted to suppliers.

These customers have often faced excessive waiting periods before repairs are carried out.

The Government’s intervention aims to eliminate such delays and raise industry standards as part of broader efforts to reform the energy market with consumers at the centre.

Suppliers were previously obligated to take reasonable steps to address malfunctioning meters, but the new rules establish a concrete timeframe that companies must adhere to or face regulatory consequences.

Minister for Energy Consumers Martin McCluskey emphasised the positive impact smart meters are having for millions of households while acknowledging the frustrations caused by lengthy repair times.

“Smart meters are already helping millions of people manage their energy use and save on bills,” he said.

“But we know far too many people can be waiting several months for their smart meter to be fixed and losing money in the process.”

The minister added: “These new rules will put an end to this, making sure meters are fixed in good time driving up standards, protecting billpayers, and helping more consumers feel the benefits of having a smart meter.”

Energy suppliers must also upgrade all smart meters currently operating on 2G and 3G networks before these services are discontinued in 2033, ensuring devices continue functioning as telecommunications infrastructure transitions to 4G.

The requirement forms part of the regulations announced today.

| PA

Nearly 40 million smart meters are already installed in homes and small businesses throughout Britain, helping consumers monitor their energy consumption more effectively.

The financial benefits have been substantial, with households using smart meters collectively saving an estimated £700million on their energy bills during 2025.

The Government also published guidance last summer to help families understand their rights when having a smart meter fitted, consolidating all relevant information in a single resource.