Ofgem bans backbilling beyond 12 months

[ALEO Admin]

Ofgem has announced that, from the beginning of May, it will ban energy companies from backbilling customers for energy used more than 12 months ago. This will replace the existing voluntary agreement for suppliers not to backbill past 12 months, as this does not cover all suppliers, and those that have signed up do not always follow this agreement.

Ofgem says that 'shock bills', which can result from problems with a supplier’s billing system, or from suppliers estimating bills, are typically over £1,000, and can even be in excess of £10,000, often leaving customers struggling financially or even in debt.

Ofgem's decision follows its consultation on the issue in November 2017, and will cover suppliers to domestic consumers and microbusinesses, although there will be an exception where consumers actively prevent suppliers from taking or receiving accurate meter readings, for example by tampering with or obstructing access to the meter.

For more information, see:
https://www.ofgem.gov.uk/publications-a ... -12-months