UK households may not have to pay energy bills for usage older than 12 months if they send a simple letter to their supplier, thanks to Ofgem's back billing rules.
What are the back billing rules?
Ofgem has confirmed that there are "rules in place to protect you" as it notified energy bill payers about guidance it has published, in a new post on social media. The key factor is when the energy was consumed.
If you haven't received an energy bill in more than a year, your supplier must adhere to specific regulations concerning how far back they can invoice you. Your energy provider may try to charge you for energy consumed previously, and this is referred to as 'back billing'.
How the 12-month rule applies
According to back billing regulations, your supplier cannot typically issue a bill for energy consumed more than 12 months previously. However, these regulations don't apply if the supplier did send you a bill within that 12-month window and you didn't settle it. In those situations, the supplier maintains the right to pursue the charge.
Nevertheless, if you haven't received an accurate gas or electricity bill for over 12 months, you may not be responsible for the complete amount of energy used during that timeframe.
What to do if you're overcharged
If your supplier attempts to bill you for more than they're permitted to, Citizens Advice has a template letter available to help you in composing a formal complaint. "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", Citizens Advice said.
For example, if you haven't received an electricity bill for two years and request one from your supplier, you are under no legal obligation to pay the entire two years' worth of charges upon its arrival. Citizens Advice recommends putting your concerns in writing to your supplier, making 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 grounds 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 cannot pay in its entirety, you can request to settle it in instalments via a payment plan. You will pay fixed amounts over an agreed period, keeping the sum affordable. The payment plan will cover the outstanding balance as well as a contribution towards your continuing energy usage.
