UK households may be protected from paying backdated energy charges under Ofgem rules, with a simple letter potentially helping them avoid certain costs. The energy regulator has clarified that there are "rules in place to protect you" as it reminded bill payers about published guidance in a social media post.
What Are Back Billing Rules?
Back billing refers to when an energy supplier tries to charge for energy consumed previously. If you have not been sent an accurate gas or electricity bill for more than 12 months, you may not be responsible for the full amount of energy used during that time.
According to these rules, your supplier cannot typically issue a bill for energy used more than 12 months previously. However, the rules do not apply if the supplier did issue a bill within that 12-month window and you did not settle it, in which case the supplier maintains the right to recover the charge.
How to Respond to a Back Bill
If your supplier attempts to invoice you for more than they are permitted to, Citizens Advice has a template letter to help you compose a formal complaint. Citizens Advice said: "If your supplier tries to charge you for more than 12 months' energy use, you should write to them. Tell them that you're protected by the back billing rules and should only be charged for 1 year's energy use."
For example, if you have not received an electricity bill for two years and you request one from your supplier, you are under no legal obligation to pay the full two years' worth of charges upon its arrival. Citizens Advice recommends putting it in writing to your supplier to make it clear that you are aware of the back billing rules, and that you should only be required to settle the previous year's energy costs.
Exceptions and Payment Plans
Your supplier should then issue an amended bill covering just one year's usage. However, if you have behaved unreasonably, your supplier may have the right to charge you for the full amount. Unreasonable behaviour includes, but is not limited to, not allowing the supplier access to read your meters without a good reason, and/or stealing electricity or gas.
Should you receive a bill that you are unable to pay in full, you can request to settle it in instalments through a payment plan. You will pay fixed amounts over an agreed period, keeping the sum manageable, and the plan will cover the outstanding balance as well as a contribution towards your ongoing energy usage.
