
How to get £40 for your faulty smart meter
Ed Miliband, the Energy Secretary, wants to have smart meters installed in 75pc of homes by the end of the year – despite only 68pc currently having one fitted.
In an attempt to rescue the beleaguered rollout, Ofgem, the energy watchdog, will require suppliers to pay out £40 in compensation to households starting next year if installation is delayed by more than six weeks – or if a 'dumb' smart meter is not fixed within 90 days.
Miatta Fahnbulleh, the minister for energy consumers, said: 'This marks another step in our work to bring down bills for working people and rebuild consumers' confidence in the energy sector.'
The smart meter rollout was started by Mr Miliband during his first tenure as energy secretary in 2008, but has been plagued with technical failures and low enthusiasm from consumers.
Official figures show one in 10 smart meters does not work correctly, and the Telegraph has heard from countless homeowners whose faulty smart meters have landed them with surprise bills.
Damning official figures show 3.5 million smart meters have 'gone dumb because they have lost their ability to send usage information'.
The new rules will force suppliers to pay out 'for a failed smart meter installation due to a fault within the supplier's control'.
But Simon Francis, of the End Fuel Poverty Coalition charity, warned that most smart meter faults are caused by the Data Communications Company, not the energy supplier.
He said: 'We are concerned that this fault will be exempt from compensation as it could be argued to be outside the suppliers' control.
'What's more, when faults with smart meters are ongoing, it means that even people who want a smart meter may not be able to access the best tariffs available. This is an issue that can't be dealt with by a one-off payment.'
In the past year, Ofgem has overseen the repair or replacement of 600,000 faulty smart meters.
The regulator said the new standards would 'further incentivise suppliers to install and repair smart meters as soon as possible'.
Charlotte Friel, of Ofgem, said: 'We know many customers who want a smart meter wait too long to get one installed or face delays on repairs when it stops working – this needs to change. '
It comes as Mr Miliband's energy department announces plans to pay homeowners living near new pylon lines £2,500 over 10 years.
Households living within 500m of a pylon would receive a £125 discount off their energy bills every six months as part of the Government's push towards net zero.
The Department for Energy Security & Net Zero estimates that around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade, which experts claim will require an additional 600 miles of overhead cables.
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