Ofgem faces mounting pressure over its handling of a British Gas meter inquiry, with campaign groups demanding transparency on installation practices and billing accuracy. The regulator has not yet released findings from an investigation launched after reports of forced smart meter installations and disputed charges, leaving thousands of households uncertain about their rights.
As reported by The Times, campaigners have written to Ofgem demanding answers over the length of the inquiry and what happens to affected customers. The case highlights a wider problem: smart meters are supposed to save money and improve energy data, but when they go wrong, the consequences hit household bills and eco-upgrade plans directly.
Who qualifies, and who doesn’t
Ofgem’s inquiry covers British Gas customers who say they were misled into accepting a smart meter, or had one installed without consent, and later found their bills did not match usage. Some report charges of hundreds of pounds for energy they did not use. The regulator has not confirmed a timeframe for its conclusions, nor what compensation, if any, will be offered.
For homeowners not directly affected, the case is a warning. Smart meters are a prerequisite for many time-of-use tariffs and are required for full EPC assessments under the new methodology that will measure actual consumption. A faulty meter undermines both. The Energy Saving Trust advises households to check meter readings regularly and report discrepancies within 28 days, but the onus remains on the consumer.
Yet Ofgem’s own data shows that complaints about smart meter accuracy have risen 40% in the last two years. The regulator has not named British Gas in its enforcement actions, but campaigners say the delay erodes trust in the entire smart meter rollout, a programme that has cost £11 billion so far.
What it costs a typical 3-bed semi
If a smart meter overcharges by 10%, a typical 3-bed semi using 12,000 kWh of gas and 3,000 kWh of electricity could pay an extra £150 a year on current price cap rates. That is not a small rounding error, it is a material cost that compounds over time. And if the error is discovered late, the household may have to fight for a refund with limited evidence.
But the bigger cost is missed opportunity. Homeowners planning to install a heat pump or solar panels rely on accurate consumption data to size the system correctly. A meter that reads high can lead to an oversized heat pump that short-cycles and wastes electricity. A meter that reads low can leave a system undersized, forcing the household back onto gas top-ups at peak prices. Either way, the eco-upgrade fails to deliver the promised savings.
The catch is that most homeowners do not know their meter is faulty until a dispute arises. Ofgem does not require suppliers to proactively test meter accuracy unless a complaint is lodged. And even then, the burden of proof often falls on the customer.
What this misses, the wider gap in consumer protection
Campaigners argue that the British Gas case is not an isolated incident but a symptom of a system that prioritises rollout targets over accuracy. Suppliers are incentivised by the government to install smart meters, with penalties for missing targets. That creates a perverse incentive to push installations through without proper checks.
Ofgem could mandate independent accuracy audits for a sample of installations each year, paid for by suppliers. It could also require suppliers to offer automatic compensation for any billing error above 5%, similar to the guaranteed standards that apply to power cuts. Neither is in place. The regulator’s own consumer vulnerability strategy, published in 2023, mentions smart meters only in passing.
For homeowners, the immediate action is clear: check your smart meter readings against your actual usage at least once a month. If they diverge by more than 5%, log a formal complaint with your supplier and copy Ofgem. Keep a paper trail. And if you are planning an eco-upgrade, get a manual meter reading confirmed before the installation, do not rely solely on smart meter data.
Households affected by the British Gas inquiry can submit evidence through Ofgem’s online portal. The regulator has not set a deadline for its findings, but campaigners expect a response within the next three months. In the meantime, the safest meter is the one you watch yourself.
Frequently Asked Questions
Yes. You have the legal right to refuse a smart meter. If you feel pressured or misled, you can complain to your supplier and escalate to the Energy Ombudsman. Ofgem's inquiry is specifically looking at cases where consent was not properly obtained.
Compare the meter reading on your in-home display with the reading on the meter itself. If they differ, or if your bill does not match your usage, contact your supplier. You can also request a meter accuracy test, suppliers must do this free of charge within 28 days.
