Families must not pay the price for bill errors, says Mags

A Paisley councillor has welcomed a ban on energy companies billing customers for gas and electricity used more than 12 months earlier.

Mags MacLaren says the new rules outlined by regulator Ofgem will prevent householders being punished for billing errors by suppliers.

She said: “This is good news for consumers as it will stop energy companies from threatening them with often large bills that are older than 12 months.

“Consumers should not be penalised for billing mistakes that are the fault of their supplier, so this is a welcome move from Ofgem.

“Billing and metering problems are one of the most prevalent energy issues reported across the Citizens Advice Service in Scotland, and unexpected bills can make it very difficult for consumers to make ends meet.

“We hope that this will lead to better billing practices from suppliers.”

Backbills can result from problems with a supplier’s billing system, or from suppliers estimating bills until they have an actual meter reading which may show that the customer’s consumption is higher than expected.

Suppliers then send a ‘catch-up’ bill to recover the difference.

The typical backbill is £1,160, but they can be much higher, leaving customers struggling financially or even in debt and causing stress.

The ban will start in May for domestic customers and in November for the smallest businesses.

The only exception is when customers have purposefully prevented the company from taking a reading.