Top

Ofgem 'back-billing' investigation: your rights if you’ve been charged for energy you used more than 12 months ago


Updated on 10 March 2025 | 0 Comments

With energy companies under fire for billing customers for money they don’t owe, Katy Ward reveals your rights if you're charged unfairly.

Regulator Ofgem has found that energy suppliers are wrongly sending customers demands for money they don’t owe.

And they’ve been put on notice that they’ll be fined if they continue to do so.

So, what exactly is happening?

According to BBC reports, the regulator is cracking down on companies that unfairly charge customers for energy they used more than 12 months ago.

This process is known as ‘back-billing’.

We delve into the problem – and how to fight back if you’ve been a victim.

Best and worst energy firms for customer service

What is ‘back-billing’?

If your gas or electricity supplier believes you have not been charged accurately for your usage, it may send you a back bill.

Sometimes called ‘catch-up’ bills, these cover a period during which you’ve used energy but have not been charged.

Your supplier may increase your Direct Debits to repay the money over time.

Visit the loveMONEY energy hub page to see how much you could save by switching and get more tips to help cut your bills

The 12-month rule

Under rules introduced in 2018, suppliers can’t issue a demand for energy used more than a year ago.

Despite this, the BBC reports that thousands, if not tens of thousands, of households are being hit with unexpected payment demands.

The rules won’t apply if your supplier sent a bill before this period elapsed and you didn’t pay.

Soaring complaints

Alarmingly, the problem is on the increase.

The research found that Citizens Advice received 47,000 complaints about billing issues in 2023, surging to almost 60,000 in 2024.

Energy companies have acknowledged errors and apologised.

However, they argue that mistakes are inevitable, as tens of millions of bills are issued every month.

Eight smart meter scandals

Demands from the regulator

The situation has also caught the attention of politicians, with energy secretary Ed Miliband urging Ofgem to act.

As a result, the regulator has written to the chief executives of the UK’s energy giants, demanding investigations into billing practices.

If any supplier systematically breaks the rules, it will face fines.

The regulator has the right to investigate any company that may be in breach of its licence or consumer protection requirements.

How to cut your energy bills

What to do if you receive a back bill

Energy is a priority debt, as your supplier can disconnect you if you don’t pay, meaning you should treat any demands very seriously.

If you’re hit request for energy you used more than 12 months ago, there’s a good chance you don’t have to pay.

So, what should you do?

Contact your supplier
If you have a grievance with an energy company, the first step is often to submit a formal complaint in writing.

Many complaints can often be resolved at this stage.

The company will have eight weeks to respond before you can escalate things to the regulator.

Smart meters in the North are more likely to have issues

Use a complaint template
If you’re unsure how to complain, you may not need to write the letter from scratch.

Citizens Advice and various consumer champions such as Which? provide sample letters that you can use to formally dispute the bill.

How to complain to the Ombudsman

If your supplier refuses to cancel an unfair charge, you have the right to complain to the energy regulator Ofgem.

If the matter can’t be resolved, your energy company will need to issue a deadlock letter or ‘final response’ over the dispute.

This formal communication agrees the complaint can’t be fixed, and you now have the right to take matters further.

If the Ombudsman upholds your complaint, the company must follow its ruling.

Visit the loveMONEY energy hub page to see how much you could save by switching and get more tips to help cut your bills

Have your say

Have you received a back bill?

How was the matter concluded? Did the company write the debt off, and how easy was the process?

We’d love to hear your thoughts in the comments below.

Comments


Do you want to comment on this article? You need to be signed in for this feature

Most Popular

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.


loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom.


loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited.


We operate as a credit broker for consumer credit and do not lend directly.


Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards.


While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.