Ofgem has issued fresh guidance reminding customers of the rules and how they are meant to protect consumers
Millions of households have been urged to check their rights following an alert from the energy regulator.
Ofgem has published updated guidance reminding consumers that stringent regulations exist ‘to protect you’ from being billed for historical energy consumption in many cases, after concerns emerged that some households are still receiving unanticipated demands. A back bill is issued when a gas or electricity provider has failed to bill a customer accurately, frequently due to an administrative error or meter faults.
While customers are required to settle a correct bill, Ofgem states that suppliers are typically prohibited from billing for energy consumed more than 12 months previously if the customer had not been properly invoiced or notified about the outstanding amount.
Who is protected?
According to Ofgem’s back-billing regulations, households ordinarily do not need to pay for energy used over a year ago if:
- they have never been issued with an accurate bill for that energy.
- they have not previously been informed what they owed via a statement of account.
- their Direct Debit had been set too low due to the supplier’s error.
Nevertheless, the protection does not extend to situations where a customer has “acted unreasonably” – for instance by obstructing meter readings, consistently disregarding requests for information or payment, or committing theft of gas or electricity. Martin Lewis calls for tougher rules.
The latest reminder follows consumer champion Martin Lewis telling MPs the current safeguards are not robust enough. Providing evidence to Parliament’s Energy Security Committee earlier this year, Mr Lewis stated thousands of consumers were still being sent bills they should not be liable for, despite the existing regulations.
He contended that the definition of customers who have “unreasonably obstructed” suppliers is too ambiguous, making it simpler for companies to challenge complaints. He also pressed Ofgem to mandate that suppliers must clearly outline customers’ rights whenever a back bill is sent out.
Mr Lewis also stated the 12-month limit should be reduced to six months, telling MPs: “We live in a modern digital age… Why should a firm take over six months to give you a correct bill? I can’t see any reason for that.”
What to do if you receive a back bill
Ofgem advises anyone who gets a back bill should first verify whether the supplier has adhered to the rules. If you think the demand covers energy that falls outside the allowed timeframe, you should contact your supplier straight away. If the supplier has taken money incorrectly, it should issue a refund.
Consumers finding it difficult to pay, or who think they should not have been sent the bill at all, are also urged to contact their supplier as quickly as possible. If the disagreement cannot be settled, customers can submit a formal complaint.
The watchdog also notes that additional assistance could be on offer for households concerned about meeting their energy bills. Further information is available here.
