Energy suppliers are barred from charging customers for energy consumed more than 12 months ago under Ofgem's back billing rules, but only where certain conditions are met, a barrister has explained.
Daniel ShenSmith, a practising barrister in England and Wales who shares legal guidance on his YouTube channel BlackBeltBarrister, outlined the regulations that energy suppliers are required to follow. The rules prohibit firms from pursuing payment for energy used more than 12 months ago in three specific circumstances.
When the back billing rule applies
ShenSmith explained that a customer would not be liable to settle a backdated bill if they have not received an accurate bill for the energy before, even after requesting one. Secondly, the customer must not have been informed of any charges by way of a statement on the account previously, which may come in different forms depending on the supplier.
Thirdly, the rule applies if a direct debit amount was previously too low to cover any charges. ShenSmith noted that this is why direct debits fluctuate from time to time, and that suppliers must make the rules clear.
When the rules do not apply
The back billing rules do not apply if a customer has prevented the supplier from accurately billing them. This could include refusing to allow a meter reading or refusing to allow installation of a smart meter. The rule also does not apply if a customer has disregarded requests for payment during the 12-month period, or if they have been illegally siphoning electricity or gas.
Customers who believe they have been billed unfairly for energy consumed more than 12 months ago, and who have not received a bill or heard about it before, can write a letter of complaint to the energy company, ShenSmith said. If they receive a deadlock letter, they can bring the matter to the energy ombudsman as a complaint.
The ombudsman will subsequently determine whether to uphold or dismiss the complaint. ShenSmith noted that while customers should not feel "bullied" by energy companies, they should equally not "simply ignore" requests for payments.
