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Every week, the Money team answers a reader’s financial problem or consumer dispute – you can email yours to moneyblog@sky.uk. Today’s is…
EDF has added £250 to my bill for gas I used between January and March 2024 due to an error they made at the time. EDF has said it will review it, but will I have to pay it?
Christina
Money reporter Jess Sharp takes a look at this one…
This case dropped into our inbox from a Sky News colleague, but it sounded so familiar that we decided to feature it.
A quick scour of internet forums and social media shows back billing is still a common issue despite clear rules being in place.
Before telling you what happened in Christina’s case, let’s look at what constitutes back billing and what the rules are…
What is back billing?
If your energy supplier thinks you haven’t been billed accurately for the energy you have used, they can send you a new bill, known as a back bill or a catch-up bill.
This can be done if your energy supplier identifies a billing problem or gets a meter reading from you that suggests estimated readings have previously been wrong.
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Sometimes this means you have underpaid for the energy you have used and therefore have to make up the difference. Or it could mean you have overpaid and credit needs to be added to your account.
What are the rules?
A supplier cannot charge you for any shortfalls in payment for energy you’ve used more than 12 months ago.
This means the maximum period you can be back billed for is one year back from the date on the new bill.
Ofgem’s wording is that you can’t be charged for energy used more than 12 months ago if:
- You have not had an accurate bill for it before, even though you asked for one;
- You have not been informed about any charges due via a statement of account before;
- Your direct debit amount was previously set too low to cover any charges due.
Suppliers must make these rules clear in their contract terms…
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