The boss of British Gas has called for households to face mandatory smart meter installations weeks after government figures showed that almost 4m meters are not working.

Chris O’Shea, the chief executive of the British Gas owner Centrica, told a committee of MPs that smart meters should be installed in all homes through a “street by street” programme, in order to cut the costs of creating a smart grid.

The energy boss, who has come under fire after British Gas was revealed to have used debt collectors to force-fit prepayment meters in vulnerable customers’ homes, said the company would be willing to install smart meters on behalf of other energy suppliers.

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The government launched its smart meter programme in 2011 and had hoped to install smart meters in households across the UK before 2020 to help reach its net zero ambitions. About 60% of homes have a smart meter, according to government data.

Smart meters are considered a key tool in helping households reduce their energy use. They use real-time data to make better use of renewable energy when it is available and cut the need for fossil fuels, as well as relaying instant data on households’ energy use.

But the programme, which is being carried out by energy suppliers, has been dogged by delays and technical faults. The government’s recent data suggested that customers with smart meters may have been overcharged on their gas and electricity bills.