Energy back billing rules

This is known as ‘back billing’, and this guide will explain everything you need to know about how it works in the UK, what to do about it, and how to avoid back billing in the first place.

What is back billing?

Back billing is when your energy supplier sends you a bill for energy you’ve used in the past, but weren’t charged for at the time. It’s essentially a ‘catch-up’ bill to correct a mistake with your previous billing.

Here are a few reasons why you might get a back bill:

• Estimated meter readings - If you haven’t been providing regular meter readings, your supplier will have been billing you based on an estimate of your usage.  If your actual usage is higher than the estimate, you’ll be billed for the difference. For more information on how your energy usage is calculated, check out our guide on understanding gas and electric costs.

• A faulty meter - If your meter isn’t working properly, it might not be recording your energy usage accurately. Once it’s fixed, you might get a back bill for the energy you used but weren’t billed for.

• Supplier errors - Sometimes, your supplier might make a mistake, like setting up your account incorrectly or not billing you at all for a period of time.

Back billing can also happen if you’ve recently switched to a new energy supplier. Mistakes can sometimes happen during the changeover process, leading to a delay in you receiving the first bill.

What are the rules around back billing?

The good news is that there are rules in place to protect you from unexpectedly large back bills. These rules, which are set by the UK’s energy regulator, Ofgem, state that your supplier can’t charge you for energy you used more than 12 months ago if they were the ones at fault for the mistake.

This means that if you haven’t received an accurate bill for over a year through no fault of your own, you might not have to pay for all the unaccounted-for energy you’ve used within that time.

However, these rules can be invalidated if you’ve behaved ‘unreasonably’, in which case you may have to pay for energy used more than 12 months ago. Unreasonable behaviour includes:

• Preventing your supplier from taking a meter reading - If you’ve deliberately stopped your supplier from reading your meter.

• Stealing gas or electricity - If you’ve been illegally abstracting gas or electricity.

• Not paying a bill - If your supplier has sent you a bill and you haven’t paid it, they can still chase you for the debt, even if it was more than a year ago.

Are there back billing laws in the UK?

Yes, there are rules around back billing, which are set and upheld by Ofgem through their regulations.

Before the rules were put in place, some people were receiving back bills for thousands of pounds, covering energy used several years in the past. Ofgem recognised that this was unfair, and that suppliers needed to be more proactive in making sure their customers were being billed correctly.

These back billing laws were designed to incentivise suppliers to get their billing right the first time and to resolve issues quickly, as well as to protect consumers from the stress and financial difficulty back billing can cause.

You can find out more about energy pricing rules on Ofgem’s website.

Do I have to pay a back bill?

If you get a back bill, the first thing you should do to see if you have to pay it or not is to check the dates it covers.

If it’s for more than a period of 12 months, and you believe you’re not at fault, you should contact your supplier to clarify the situation and let them know that you’re protected by back billing rules.

What do I do if my supplier has sent me an incorrect back bill?

If you think your supplier has sent you an incorrect back bill, don’t panic. Here are the steps you can take to resolve the issue.

1. Contact your energy supplier - The first step is to get in touch with your supplier and explain why you think the bill is wrong. You can usually find their contact details on their website or on a recent bill. If you’re not sure who your supplier is, you can use our Who is my gas or electricity supplier? guide.

2. Follow their resolution process - Your supplier should investigate the issue and get back to you with a solution. If they agree that the bill is wrong, they should send you a new, corrected bill. If they disagree, they should explain why.

3. Contact Citizens Advice if it’s still unresolved - If you’re not happy with your supplier’s response, you can get free, impartial advice from Citizens Advice. They can help you understand your rights and options, and can even help you negotiate with your supplier.

4. Reach out to the Energy Ombudsman - If you’re still not able to resolve the issue with the supplier at this point, you can complain to the Energy Ombudsman. The Ombudsman is an independent body that can investigate your complaint and make a legally binding decision.

How to prevent back billing

The best way to deal with back billing is to prevent it from happening in the first place. Here are a few things you can do to reduce your chances of getting a back bill:

• Use a smart meter - Smart meters send your meter readings to your supplier automatically, so you don’t have to worry about estimated bills. Read our handy smart meter guide to find out more about how to get a free smart meter installed.

• Always double-check your energy bills - It’s a good idea to get into the habit of checking your energy bills regularly. This will help you catch any errors or inconsistencies early on.

• Submit meter readings on time - If you don’t have a smart meter, make sure you take regular meter readings and submit them to your energy supplier. This will help keep your energy bills as accurate as possible.

• Let your provider know if you’re moving to a new property - If you’re moving house, it’s important to let your supplier know your new address so they can send your final bill to the right place. Our moving house utilities guide has more information on how to go about this.

Why haven’t I received my energy bill as usual?

There are a few reasons why you might not have received your energy bill on time:

• Your energy use is being estimated - If you haven’t provided your supplier a meter reading in a while, they might be waiting for one before they send you a bill, rather than sending you a potentially inaccurate bill based on estimates.

• You’ve recently cancelled a Direct Debit - if you’ve cancelled your Direct Debit, your supplier may have put a hold on your account while they investigate.

• You’ve been charged under the wrong meter number - It’s possible that your supplier made a mistake and is billing you for the wrong meter. You can check your meter number on your last bill. Our MPAN Numbers Explained guide also has more information to help you find your meter information.