People are facing huge hikes in their direct debits to energy companies amid claims of an epidemic of "inaccurate" smart meter readings.
A combination of Brexit, the War in Ukraine, and the coronavirus pandemic has led to a spike in the cost of living after the price cap on energy was raised by 54 percent on April 1.
Business Secretary Kwasi Kwarteng last week announced the launch of an investigation by Ofgem following claims that customers were being overcharged on direct debits.
Chief executive of Ofgem Jonathan Brearley has confirmed that companies are using "bad practices", passing on the rising costs to consumers.
Data specialist Anita Dougall has said that part of the problem is a lack of "data maturity" surrounding energy prices, which makes it more difficult to ensure that charges are fair.
She told the Express: “There are many factors at play, but lack of visibility is a big one which is often down to a lack of data maturity in the energy sector.
“Many suppliers set Direct Debits based on decisions made about groups of people and averages, rather than on the individual customer and their actual consumption, which is a recipe for inaccuracy”
"This means most customers are either over or under paying.”
She went on to suggest that one way to ensure that charges are more accurate is to supply companies with as much information as possible about energy consumption.
This would help them to create a more accurate impression of customers' usage and charge them a fair price according to current rates.
She explained: “Having a smart meter can help customers to avoid bill shock, as they have ongoing visibility of their usage.
“When suppliers don’t have a recent meter reading, they will make decisions based on estimates, which are often higher than actual usage – especially if you have been making an effort to reduce your energy consumption."
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