
While smart meters are a handy way to save money on your energy bills, it turns out millions across the UK may not actually work.
According to official figures, there have been a number of issues with the nationwide smart meter rollout, with as many as 3.5 million currently operating in ‘dumb’ mode, unable to send energy usage information.
As such, Ofgem has called on providers to urgently fix broken devices, proposing they issue £40 automatic compensation to those who have to wait longer than 90 days.
Under the regulator’s plans, customers will also receive a payout if a smart meter installation fails due to a fault within their provider’s control.
Amid government targets for three-quarters of all homes to use one by the end of this year, Uswitch research shows up to 1.4 million households have waited six months or longer for their broken meter to be fixed.
However, the new proposals mean anyone who requests a new meter from their supplier will have to be offered one within six weeks, while suppliers will be required to provide a resolution plan to those who report problems with their device within five working days.

Tim Jarvis, director general for markets at Ofgem, said: ‘We’re drawing the line on excuses – suppliers will need to follow our new rules or compensate their customers.
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.’
What is smart meter 'dumb mode'
According to Smart Energy GB: ‘‘Dumb mode’ is sometimes used to describe when smart meters are not automatically sending meter readings…
‘If your smart meter is in “dumb mode” or isn’t sending regular meter readings, it will still be measuring your energy use, but it won’t send that information automatically to your energy supplier.
‘To get accurate bills, you will need to take manual readings and share them with your supplier. You will need to take regular readings until the issue is solved, and your smart meter can send readings automatically again.’
Martin Lewis discussed the topic on a recent episode of his podcast with Octopus Energy boss Greg Jackson, who claimed repairs were often not prioritised because fixing existing smart meters doesn’t count towards the targets.
The Money Saving Expert (MSE) founder previously warned ministers that up to 20% of home smart meters are not working properly, urging them to change the current rules.
In a letter to Energy Secretary Ed Miliband, he wrote: ‘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.’
Ofgem’s proposals are due to be consulted on until May, after which further details on the compensation scheme will likely be released.
Miatta Fahnbulleh, the UK Minister for Energy Consumers, commented: ‘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.’
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