Energy suppliers wrote off more than £172 million in charges for almost one million customers under Ofgem's backbilling protections, which apply when households have not been billed correctly for energy they have used. The figures, covering 2024, also show that around 11 million energy bills were issued at least a month late, including 3.5 million sent between three and 12 months after they were due.
What the backbilling rules cover
Under Ofgem's rules, energy suppliers generally cannot charge domestic customers for gas or electricity used more than 12 months ago if they failed to issue an accurate bill and the customer was not responsible for the delay. However, the protections do not mean that every bill received late can be cancelled.
Ofgem advises that customers should check the dates covered by unexpected charges and contact their supplier if they believe the backbilling rules apply. Full details are available on the Ofgem website.
Check energy bills before making payments
Arielle Flynn, head of advice at UK Debt Expert, is encouraging households to check unexpected bills carefully before agreeing to pay additional charges. She said: “If your energy bill is much higher than you expected, don’t panic or automatically assume the amount is correct.
“Start by checking the billing period, the meter readings used to calculate the charge and whether your supplier has relied on estimated readings. If something doesn’t look right, contact your supplier and ask for a breakdown of how the bill has been calculated.
“Keeping copies of previous bills and submitting regular meter readings can also help you identify discrepancies and provide evidence if you need to challenge a charge.”
Who qualifies for backbilling protection
Ofgem's backbilling rules generally apply when an energy supplier has failed to issue an accurate bill for more than 12 months. This can include situations where a supplier has not sent bills, has issued inaccurate bills or has failed to act on information needed to calculate charges correctly.
Customers may not qualify for protection if they have deliberately avoided paying bills or unreasonably prevented their supplier from obtaining accurate meter readings. The rules also do not automatically cancel debts that were correctly billed previously but remain unpaid.
Arielle said: “Receiving a bill late doesn’t automatically mean you won’t have to pay it, but there are protections in place for certain situations.
“Under Ofgem’s backbilling rules, suppliers are generally prevented from charging domestic customers for energy used more than 12 months previously where the supplier is responsible for the delay and the customer has not acted unreasonably to prevent accurate billing.
“If you receive a large bill covering an earlier period, ask your supplier to explain exactly what the charges relate to and whether backbilling protections apply. It’s important to understand your rights rather than assume you are automatically liable for the full amount.”
Help if you cannot afford an energy bill
Households struggling to pay an unexpected energy bill should contact their supplier as soon as possible to discuss affordable repayment arrangements. Ofgem requires suppliers to work with customers experiencing payment difficulties, including considering their ability to pay when arranging repayment plans.
Customers can also ask about available hardship funds, grants and other financial assistance. Arielle said: “Explain what you can realistically afford and ask whether a repayment plan or other support is available. Ignoring the bill won’t make the problem go away, and the longer you leave it, the harder it can become to manage alongside your other financial commitments.
“If you’re already dealing with other debts, it’s particularly important to look at your finances as a whole rather than agreeing to repayments that leave you unable to afford essentials.”
If a customer believes their supplier has incorrectly applied the backbilling rules, they can make a formal complaint. If the complaint remains unresolved after eight weeks, or the supplier issues a deadlock letter, the customer can refer the dispute to the Energy Ombudsman for independent consideration. More information about backbilling protections and challenging unexpected charges is available on the Ofgem website.
