Ofgem Mandates Smart Meter Payouts as Price Cap Rises

The energy regulator Ofgem has implemented new rules requiring energy suppliers to provide automatic £40 payouts to households experiencing smart meter failures or installation delays. Consumers are eligible if they wait more than six weeks for installation, if broken meters are not repaired within 90 days, or if suppliers fail to maintain appointments or process supplier switches within five working days. These measures follow reports of millions of meters entering dumb mode, losing connectivity and automatic reading capabilities. Ofgem has already enforced the repair or replacement of over 900,000 faulty meters.

These reforms come as Ofgem increased the energy price cap on Wednesday, raising the annual cost for a typical household from £1,633 to £1,723. In response to rising costs, the British Gas Energy Trust will reopen its Energy Support Grant on October 1. The grant provides up to £1,700 per household to help credit and prepayment customers clear energy debt, provided they meet income criteria or receive disability benefits.

Martin Lewis, founder of MoneySavingExpert.com, welcomed the smart meter reforms after lobbying Secretary of State Ed Miliband, though he noted the final approach was softer than originally proposed. Charlotte Friel of Ofgem stated the rules are designed to protect consumers from poor service and ensure accurate billing and real-time data tracking.