Ofgem to ban backbilling by energy suppliers

Energy industry regulator Ofgem said it was banning gas and electricity suppliers from backbilling consumers for energy used more than 12 months ago.

The ban, which takes effect in early May, will apply in cases where he consumer has provided meter readings and acted in good faith. Small businesses will also be covered.

The existing voluntary agreements for suppliers did not protect all consumers from receiving these bills, and those that have signed up “do not always follow this agreement”, Ofgem said.

Most billing problems stem from issues with a supplier’s system, or from continual usage estimates until a meter reading shows consumption is higher than expected. Suppliers then send a “catch-up” bill to recover the difference, it added.

Ofgem said the typical back-bill was £1,160, but they could be much higher, leaving customers struggling financially or even in debt, and can cause stress.

Ofgem’s interim senior partner for consumers and competition Rob Salter-Church, said it was “unfair that consumers should be left out of pocket when through no fault of their own they’re issued with a shock bill from their supplier”.