Energy back billing

Back billing is when your energy supplier sends you a late bill for gas or electricity you’ve already used but haven’t yet been billed for.

This can happen for several reasons. For example: 

• your bills were based on estimated meter readings
• you didn’t receive bills for a while
• your supplier made a mistake

Sometimes referred to as “catch-up” bills, they can cover a long period, potentially several months.

So it can be a large and unexpected expense, which is never ideal, particularly if you’re already struggling with energy bills.

Energy watchdog Ofgem has clear rules on how far back your supplier can go when you’re being billed.

You can’t be charged for energy used more than a year ago if: 

• you didn’t get an accurate statement or bill for that energy
• you tried to give meter readings or sort the issue but weren’t correctly billed
• your direct debit was too low to cover your usage and your supplier didn’t act in time

So if your supplier sends you a bill today for energy you used, say, 18 months ago, and they hadn’t sent you an accurate bill before, you might not have to pay what you owe.

You can still be charged for older energy use in some circumstances.

For example:

• you blocked access to your meter
• you didn’t respond to requests for readings
• you ignored bills or payment demands
• you were stealing gas or electricity

This is considered unreasonable behaviour by Ofgem, so even if you used energy you weren’t billed for more than a year ago, you can still be charged for the full amount.

If you get a back bill from your energy company, there are steps you can take.

Check the dates

Look closely at the dates on the bill - does it go back more than 12 months?

Find out when you last got a correct bill or statement

Think about when you last received an accurate energy bill or statement from your supplier.

If they haven’t sent you proper bills for some time - especially if you’ve been asking for one - that strengthens your case. 

Ask for details of your bill

You have the right to ask your energy supplier for a full breakdown of the charges. 

This should include the billing period, how they calculated the amount you owe, and if they used estimated or actual meter readings. 

Keep records

It’s worth logging all communication with your supplier, including dates, what was discussed and any meter readings you’ve taken and submitted.

Don’t pay straight away 

If you think the bill breaks the back billing rules, don’t rush to pay it.

Otherwise, it could be seen as you admitting that you owe the money.

Write to your supplier

If you don’t think the back bill is fair, write a letter to your supplier and explain why you shouldn’t be charged this amount.

You can explicitly mention Ofgem’s back billing rules and the time limit that it places on energy firms.

If your energy provider tries to charge you for energy used over a year ago, and it’s not your fault, then write to them and mention your rights under the back billing rules.

You can ask them to cancel the part of the bill that’s over 12 months old.

If your supplier refuses to change the bill, you can complain and take your case to the Energy Ombudsman.

If you can’t afford to pay the back bill, contact your supplier and explain your situation.

They might give you options such as a payment plan based on what you can afford.

Or they may let you spread payments over the same time the debt built up.

So if, for example, you have nine months of debt, you’d get nine months to pay it back.

You also can’t lose sight of your current bills, so if you’re struggling to keep up with these, access the support that’s available.

For example, you might be able to get a grant to help you pay off what you owe from energy companies and charitable trusts.

Most energy companies set aside money to help customers who are really struggling.

You can’t guarantee that you won’t get a back bill again in the future.

But you can reduce your chances of this happening by: 

• sending regular meter readings
• getting a smart meter
• checking your bills carefully for errors or gaps
• letting your supplier know if you move house
• telling them if you stop receiving bills or statements
• contact them early if something doesn’t look right
• signing up to the priority services register

By being proactive and letting your energy supplier know if you think there’s been a mistake, you’ll be better placed to stop debt building up without you noticing.