In 2018, energy providers were sternly instructed to cease back-billing consumers for energy usage beyond a 12-month period. Yet, despite these regulations, some providers continue to flout the rules, leaving customers with shockingly high bills.
As frustrated consumers share their experiences online, it raises questions about whether customers should still find themselves in such predicaments. Many of these stories highlight the challenges faced by individuals who may not be aware of crucial back billing rules or lack the technical knowledge to navigate the situation effectively.
The question lingers: Should consumers continue to be thrust into situations where their understanding of rules and regulations determines whether they pay an exorbitant bill or exercise their rights to fair billing practices? As debates surrounding consumer protection in the energy sector persist, calls for increased awareness, streamlined communication, and improved transparency in billing practices gain traction.
The Back-Billing Rules
The back-billing rules are straightforward:
- No Charges Beyond 12 Months: You cannot be charged for gas or electricity consumed more than 12 months ago if you haven’t received accurate billing during that time. Whether it’s due to incorrect billing or lack of a statement of account, suppliers must not recover any shortfall for usage beyond this period. Even if your Direct Debit was adjusted upward, the 12-month limit still applies.
- Clear Contract Terms: Suppliers are obligated to make these terms explicit in their contract conditions.
- Household and Micro Business Customers: The rules apply to both household and micro business energy customers. However, they may not apply if you’ve obstructed accurate billing (e.g., blocking meter readings or stealing gas/electricity).
What to Do If You Receive a Back Bill
If you receive a bill for energy usage dating back more than a year, take the following steps:
- Contact Your Supplier: Reach out to your energy supplier and remind them of the back-billing rules. Explain that you understand your rights and should only be charged for unpaid consumption during the last 12 months if you haven’t received an accurate bill for that period.
- Citizens Advice Example Letter: To assist you, Citizens Advice provides an example letter for back-billing situations.
- Complaints: If your supplier insists on the full amount, make a complaint and ask to speak to their back billing department.