Households could be in line for automatic compensation as the energy watchdog clamps down on suppliers botching smart meter installations.

Millions of smart meters have been left in "dumb" mode, failing to transmit automatic readings, leading to billing chaos and frustrated customers.

Under new regulations, suppliers must install a requested smart meter within six weeks, and if the installation fails, customers must receive £40 compensation if the issue is not fixed within 90 days.

The move is aimed at tackling poor service and accelerating the rollout, as the government pushes to meet its target of three-quarters of homes having a smart meter by the end of the year.

Tim Jarvis, a director at the watchdog Ofgem, said: "Millions of households are already benefiting from smart meters, from cheaper tariffs to real-time tracking of their energy usage. But too many are facing long delays in getting them installed or repaired.

"Our new rules ensure consumers are compensated if suppliers fail to deliver."

With 60% of homes now equipped with smart meters, the rollout needs a significant boost to meet government targets within the next nine months.

Official figures show that 680,000 smart meters were installed in the third quarter of last year, but many still malfunction or revert to outdated manual readings.

Miatta Fahnbulleh, Minister for Energy Consumers, welcomed Ofgem's tougher stance. "We want to ensure more consumers experience the benefits of smart meters.

"Introducing guaranteed performance standards will improve customer experience and ensure that those upgrading their meters are properly supported."

As pressure mounts on suppliers, the prospect of automatic compensation provides a silver lining for customers who have faced delays, mis-billing, and the frustration of non-functional smart meters.