UK energy regulator, Ofgem to bar energy companies from levying back-dated bills
05 Mar 2018
UK energy regulator, Ofgem will formally ban gas and electricity suppliers from issuing customers, bills for energy used more than a 12 months ago.
Most big suppliers are bound by a voluntary agreement that keeps them from demanding payment from a domestic customer for energy supplied more than a year ago.
Following a consultation, Ofgem has banned all suppliers from back-billing, where the consumer has provided meter readings and acted in good faith.
The ban, which also covers small businesses, will take effect from early May.
According to commentators, most billing problems can be traced to the billing systems of suppliers, or due to incorrect registration of the customer's address for the meter.
With such problems, suppliers will estimate bills until they have an actual meter reading that shows the customer's consumption has been higher than billedf. Suppliers then send a ''catch-up'' bill to make up the difference.
In many cases, customers have not received bills for 20 years.
According to Ofgem the typical back-bill was £1,160, but it could much higher, leaving customers struggling financially or even in debt, causing them needless stress.
The regulator added that consumers who actively prevent suppliers from taking or receiving accurate meter readings will not gain this benefit.
According to Ofgem, correct billing is an essential part of customer service, and large catch-up bills could leave consumers struggling financially or even in debt to their supplier.
With smart meters, which measure energy use in real time gradually replacing the traditional meters, "back billing" will come to an end.
Rob Salter-Church, Ofgem's interim senior partner for consumers and competition, said, "Large catch-up bills can leave consumers struggling financially or even in debt to their supplier.
"Getting billing right is an essential part of customer service, and it's 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.''
