A £250 bill for gas consumed two years ago? That raised immediate red flags for the Money team at Sky News. This case, submitted by a reader named Christina, highlights a persistent issue in the energy sector: back billing, where suppliers charge for past usage due to billing errors.
Understanding Back Billing: What It Means for Consumers
Back billing occurs when an energy supplier, such as EDF, identifies a discrepancy in previous bills and issues a new charge to correct it. This can happen if estimated meter readings were inaccurate or if there was a system error. In some instances, consumers may owe money for underpaid energy, while in others, they might receive a credit for overpayment.
The Legal Framework: Ofgem's 12-Month Rule
Under regulations set by Ofgem, the UK's energy regulator, suppliers are prohibited from charging customers for energy used more than 12 months prior to the date of the new bill. This rule applies in specific scenarios:
- If you have not received an accurate bill despite requesting one.
- If you have not been informed of charges through a statement of account.
- If your direct debit was set too low to cover the actual usage.
However, these protections do not apply if you have acted unreasonably, such as by blocking meter access or ignoring payment requests.
Steps to Take If You Receive a Back Bill
If you find an unexpected charge on your energy bill, follow these steps to protect your rights:
- Check the dates: Ensure the billing period falls within the last 12 months. If it exceeds this timeframe, you may not be liable to pay.
- Contact your supplier: Point out the Ofgem rules and request a detailed breakdown of the charges, including meter readings and calculations.
- Allow time for resolution: Give the supplier up to eight weeks to address the issue. If unresolved, you can escalate to the energy ombudsman for a free investigation.
Christina's Case: A Resolution with EDF
In Christina's situation, EDF initially added £249.69 to her account for gas used between January and March 2024. After the Money team intervened and highlighted the back-billing rules, EDF reviewed the case. They agreed that £127.52 of the charge was invalid and, as a goodwill gesture, waived the remaining £97.16 due to the time elapsed. Additionally, EDF credited £25 to her account as an apology for the inconvenience.
EDF commented: "Unfortunately, a system error led to Christina receiving an incorrect bill in 2024. As it is more than 12 months old, we have to conduct a review into billing which we will aim to complete as quickly as possible. Since that issue, we are pleased to say her bills have been accurate, and we have issued a goodwill payment as a means of apology."
This feature serves as an educational overview, not financial advice. For personal dilemmas, email the Money team at moneyblog@sky.uk with the subject line "Money Problem".
