Three million households at risk of incorrect energy bills due to faulty smart meters

Almost three million smart meters in Britain are not working properly - leaving customers vulnerable to be charged incorrect energy bills.

Smart meters are devices that record real-time information about your gas and electricity use. This data is then sent back to your energy provider through wireless technology, so it knows how much power you’re using.

The idea is that customers shouldn’t need to manually record and send meter readings to their energy provider. In return, your bill is then supposed to be more accurate - if your meter is working correctly, that is.

A total of 2.7 million of around 33 million meters are not in smart mode, according to figures from the Department for Energy Security and Net Zero (DESNZ). A spokesperson from the DESNZ told the BBC : "We understand a small proportion are suffering from technical issues and are working with Ofgem, energy suppliers and data experts to solve these issues."

There are several reasons why smart meters stop working - for example, if they lose connection. If your smart meter suddenly stops working, you’ll be issued an estimated bill until you send over a manual meter reading to your energy supplier.

You can tell if your energy bill has been estimated as there should be an “e” mark on your statement. If you have a first generation smart meter, and you switch suppliers, your new energy provider might not be able to read your data automatically. Energy companies are currently installing second generation smart meters, and all first generation ones will eventually be added to the national network so they can communicate with all suppliers.

Households aren’t required to have a smart meter - it is completely down to you. However, energy companies are under pressure to take “all reasonable steps” to install smart meters by 2025.

Energy regulator Ofgem has announced its price cap will rise to £1,928 from January 1, 2024. This will be the rate until March 31. The price cap sets the maximum rate energy firms can charge per kilowatt (kWh) hour for gas and electricity you use, along with standing charges. Standing charges are what you have to pay no matter how much energy you use.

The headline figure is what a direct debit customer with "typical energy consumption" can expect to pay each year based on wholesale energy prices. The price cap is slightly different if you're a prepayment customer, or if you pay on receipt of bill.