Britain’s major energy providers have paid out more than £20 million in compensation for billing errors over the past five years, according to an analysis by Guardian Money. British Gas, the UK’s largest energy supplier, accounted for over a fifth of these payouts, highlighting widespread issues with incorrect billing, poor customer service, and smart meter failures.
Data from the Energy Ombudsman reveals a 141% increase in billing complaints since 2019, peaking in 2023 at 67,295 cases before slightly declining. Even with the recent dip, complaints remain higher than pre-pandemic levels, signaling persistent challenges within the industry.
British Gas Faces Sixfold Increase in Complaints
British Gas has experienced a dramatic increase in formal billing complaints, with cases ruled against the company rising from 2,396 in 2019 to 17,965 between October 2023 and September 2024.
Despite serving over 7.5 million residential customers, British Gas still had the highest complaint rate among major suppliers, with 53.7 complaints per 100,000 customers in the most recent data.
Over five years, British Gas paid out £4.15 million in compensation, followed by Ovo Energy (£1.28 million) and EDF (£426,000). In the last recorded period alone, British Gas paid £2.22 million for billing disputes.
The compensation, known as “time and trouble” awards, is issued to customers for the stress and inconvenience caused by billing mistakes—not as reimbursement for overcharges.
Rising Energy Billing Complaints Leave Vulnerable Customers Struggling
The fuel poverty charity National Energy Action warns that these figures may underestimate the full scale of the issue. Many vulnerable customers struggle to navigate complaints procedures, meaning unresolved disputes could be far more widespread than reported.
Peter Smith, director of policy at National Energy Action, stated:
“We have seen firsthand how inaccurate or unexpected bills can push vulnerable customers to breaking point. Beyond financial hardship, the stress and anxiety are often unbearable.”
Citizens Advice also reported a 472% increase in complaints against dual-fuel energy companies between 2013 and 2023. The organization urged Ofgem to impose stricter back-billing regulations, ensuring consumers are not unfairly charged for past errors.
In 2024 alone, 59,773 customers approached Citizens Advice with billing issues, including unclear, incorrect, or excessive catch-up bills—more than double the complaints recorded in 2020.
British Gas Customer: “They Made It Impossible to Pay My Bill”
One affected customer, Fran Wescombe, described her frustrating experience with British Gas billing errors after moving into a new flat in Watford in December 2023.
Initially told her bills would be £105 per month, she later received an unexpected £503 charge in August, despite all previous bills being estimated. A meter reading was supposedly taken, but neither she nor her landlord had authorized it.
Despite requesting a reassessment and setting up a direct debit to manage payments, British Gas failed to process her payments correctly. By January 2025, her outstanding balance had surged to £1,116, which the company took in full—without notice.
“I called to arrange instalments, but they just took the full amount without warning. I had to cancel the payment through my bank,” Wescombe said.
A British Gas spokesperson acknowledged the failure, stating:
“We’re sorry for the service Ms. Wescombe received. The outstanding balance built up due to estimated meter readings. We have reached out to discuss payment options.”
Energy Ombudsman: Suppliers Must Improve Billing Practices
The Energy Ombudsman acknowledged that the energy sector has faced significant challenges since 2020, including COVID-19, supplier failures, and rising energy prices.
Despite a slight reduction in complaints since their 2023 peak, the ombudsman emphasized that energy companies must do more to resolve disputes before they escalate.
“These figures demonstrate the need for suppliers to improve their billing accuracy and customer service,” an ombudsman spokesperson said.
As smart meter adoption increases, experts believe billing accuracy should improve. However, ongoing issues suggest that more oversight and regulation are needed to protect consumers from unfair energy charges.
