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.
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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.
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.
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.
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.
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.