Back-bill victory for energy users

Problems with inaccurate energy bills generate more pleas for help to Raw Deal than just about anything else.

The good news is that under stricter new rules announced this week, all energy firms are soon going to be banned from back-billing customers beyond a year.

Energy regulator Ofgem has announced that from the end of April, no firm will be able to bill customers for energy used more than 12 months ago.

Six firms, including British Gas, E.on and EDF, already agree not to bill customers beyond 12 months as part of a voluntary scheme, but Ofgem says these companies don’t always follow these rules and so it’s putting in place a ban that will apply to the whole sector.

Back-billing usually happens when suppliers estimate bills as they don’t have regular, accurate meter readings. Once they have the meter readings they may then send a catch-up bill if the estimated bill is too low.

The regulator says the typical back-bill is £1160 but in extreme cases it has seen customers suddenly asked to pay more than £10,000.

“Getting billing right is an essential part of customer service,” said Rob Salter-Church, Ofgem’s interim senior partner for consumers and competition.

Suppliers, however, would still be able to recoup money past 12 months if customers’ behaviour has been unreasonable, such as blocking access for meter readings, Ofgem added.