Martin Lewis has raised concerns that some energy companies are continuing to back-bill customers for usage beyond the 12-month limit set by Ofgem. The financial expert told MPs at a public accounts committee hearing that he regularly hears from people being chased for payments dating back two years, despite regulations designed to protect them.
Ofgem's 12-month back-billing rule
Under Ofgem rules, domestic energy consumers and micro businesses do not have to pay for energy used more than 12 months ago if they have not previously been informed of the amount due through a statement of account, if the direct debit was set too low, or if they have not received an accurate bill. However, Lewis said many customers are unaware of this protection and end up paying unfairly.
Lewis told the committee: “We have a host of problems over billing. Billing is incredibly complex, especially in the energy world. We have the issue that you cannot be back-billed for more than 12 months. I think Ofgem has been cracking down on that, but I am still regularly contacted by people who have had two years of back-billing.”
Customers urged to know their rights
According to Citizens Advice, a supplier cannot usually send a bill for energy used more than 12 months ago. The advice site states: “The back-billing rules don't apply if the supplier sent you a bill before the year passed and you didn't pay. In this case, the supplier can still charge you.” It advises customers to write to their supplier and state they are protected by the back-billing rules and should only be charged for one year's energy use. If the company persists, customers should lodge a complaint.
Lewis highlighted the systemic issue: “One would surely think that in this modern digital world something is systemically going wrong in the companies in the way that we do this.”
