The energy regulator for Great Britain plans to crack down on suppliers that bungle smart meter installations after millions of the devices have been left to go into “dumb” mode, where they stop automatically transmitting readings.
Ofgem said households that request a smart meter should have one fitted within six weeks, and if the installation failed they should automatically receive £40 compensation if it was not fixed within 90 days.
The regulator is cracking down on poor smart meter service amid fears that the government could fall short of its goal for three-quarters of all homes to use one by the end of this year.
The consumer champion Martin Lewis, the founder of MoneySavingExpert, 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.
Tim Jarvis, a director at Ofgem, said: “Millions of households are already taking advantage of the benefits [smart meters] can offer, including unlocking cheaper and more flexible tariffs, automatic meter readings, and real-time data to help accurately keep track of spending.
“But 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,” he said.
About 60% of households now have a smart meter, meaning the rate of installations would need to step up if the government is to meet its aim within the next nine months.
There are 24m gas meters and 29m electricity meters installed, according to the latest official data, after 680,000 smart meters were installed in homes in the third quarter of last year.
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Miatta Fahnbulleh, the minister for energy consumers, said: “We want to make sure more consumers feel the benefits of having one installed. A crucial part of that will be improving the smart meter customer experience, so we welcome Ofgem’s proposals to introduce guaranteed standards of performance for smart meters.
“This will help to ensure people who want to upgrade their meters are better supported through the process, and can make the most of their new smart meter.”
