Inaccurate smart meter readings could add £50 a year to your energy bill

As research reveals that smart meters could be overcharging many households, we look at the rules surrounding inaccurate readings and your rights if your device is defective.

Energy giants love to tell us that smart meters are an easier and more convenient way for us to pay for our gas and electricity.

However, research from Money Mail revealed that industry fine print could allow these devices to ‘overcharge’ us by more than £50 per year.

According to the findings, there are more than 34.8 million smart meters in the UK, with most people unaware that these devices can be off by up to 3.5% and still be considered to be in working order.

Even more worryingly, this is all perfectly legal.

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A ‘permitted’ margin of error

Under regulation laid out by the now defunct National Measurement & Regulation Office, electricity meters have ‘permitted margins of error’ of between +2.5% and -3.5%.

For gas readings, these margins allow for both under- and overpayments of 3%.

In practice, this means that you could end up overpaying by as much as 3% and your meter would still be deemed to be ‘accurate’.

On the flip side, you could underpay up to 3.5% for your electricity usage.

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Lifetime overpayments of up to £2,750

Although a 3% error margin may not sound like much, these overpayments could soon add up.

As the research points out, the average monthly energy bill in the UK is £153. With a 3% ‘tolerance’ for overpayments, this could mean that you are left out of pocket by £4.60 per month.

Over the course of a year, this could add up to £55, or £2,750 over a lifetime, the research found.

To make matters worse, any energy customers who express concerns over the accuracy of their smart meter could face a bill of up to £192 if the device is checked and found to be working.

How accurate are smart meters?

While both the Government and energy companies insist that smart meters are as reliable as more conventional models, statistics suggest otherwise.

In fact, the Government’s own data found that almost four million smart meters weren’t working correctly in Great Britain at the end of 2023.

This typically means that they are not working in ‘smart mode’ and therefore failing to automatically send readings to providers. This is often described as having ‘gone dumb’.

Other smart meter faults include broken displays, blank screens and inaccurate readings.

How do I know if my smart meter is faulty?

If you suspect a fault with your smart meter, you should first check your most recent bill.

If your meter has failed to send readings to your energy company, your bill will most likely record an estimated meter reading.

Your supplier may also send you an alert if your smart meter has failed to send the necessary information.

You can check if your device is working in smart mode through an online tool on the Citizens Advice website.

Get your smart meter tested

If you believe your smart meter is faulty, you can ask your supplier to inspect the device.

This process will differ depending on whether the issue is with your gas or electricity meter.

With electricity meters, the provider will send an engineer to your home to test the device and to potentially install a second meter temporarily.

If the suspected fault is with your gas meter, the company will take your device away for testing by an independent expert. During this period, the company will install a replacement meter in your home.

Your supplier may also ask you to take daily readings over seven days after you report the fault so that it can check your usage.

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Your rights if your meter is broken

After your meter has been inspected, you should receive a certificate confirming whether it is working correctly.

If your meter is found to be defective, your supplier should replace it and refund any overpayments you have made as a result of the fault.

In certain cases, you may also be entitled to compensation from your energy company.

However, as mentioned earlier, your supplier could demand that you pay for the test yourself if your smart meter is deemed to be working correctly.

Be aware, Government figures reveal that the majority of smart meters that undergo evaluation are judged to be in working order.

How to complain about your energy company

If you believe that your energy company hasn’t followed the rules when checking your smart meter, you should first complain directly to the supplier itself.

As with all complaints, the company will have up to eight weeks to investigate the matter (or to provide you with a deadlock letter stating that it cannot resolve the issue).

At this stage, you have the right to take your complaint to energy regulator Ofgem if you’re still not satisfied.

If the Ombudsman upholds your complaint, your supplier must comply with its ruling.

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Can my energy company force me to get a smart meter?

While energy companies often put the pressure on for us to ditch our old-style devices, you are under no obligation to do so.

If your supplier tells you that you must have a smart meter installed, this isn’t true and you should complain about these practices.

However, there may be an exception if your traditional meter is broken or has reached the end of its lifespan. In this case, you may need to have a smart meter installed as most providers no longer fit the conventional models.

Also, bear in mind, that many suppliers only offer their cheapest tariffs to those with a smart meter.