Every week, the Money team answers a reader’s financial problem or consumer dispute – you can email yours to [email protected]. 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?
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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:
Suppliers must make these rules clear in their contract terms and conditions.
But they don’t apply in all circumstances…
You have a responsibility to ensure that the energy supplier is able to obtain accurate meter readings.
So, these rules do not apply if you have acted “unreasonably”.
Ofgem describes examples of “unreasonable behaviour” as blocking access to your meter, ignoring requests for payment from your supplier or stealing electricity or gas.
What should you do if you get a bill?
The energy ombudsman says “many people have reported problems with recalculated bills that go back further than 12 months”, despite the rules set by Ofgem.
If you get a bill, you first need to check the billing dates to make sure they are within the timeframe you can be charged for.
If it’s not within 12 months, point this out to your supplier, saying you don’t believe it needs to be paid under Ofgem’s back-billing rules.
For more information about how we use your data and your rights, you can visit our Privacy Centre.
If it’s unclear, then ask the energy supplier to explain it to you.
Make sure you review the amount that is owed – you can ask your supplier to do this.
You can also get the company to send you a breakdown showing the meter readings and how they have calculated the charges.
The ombudsman says you should give the supplier eight weeks to resolve the issue.
If you get a deadlock letter (a letter that signals a final response and that your complaint cannot be resolved), you can contact the ombudsman for free to investigate.
What happened to Christina?
Despite telling her it would review the case, the £249.69 had already been added to her account.
When the rules were pointed out to EDF, it agreed £127.52 of the charge wasn’t valid.
It said the remaining £97.16 could have been claimed, but it would wipe it off as a goodwill gesture due to the length of time that had passed.
It also added £25 credit to her account to apologise for the inconvenience.
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When we asked for a comment, EDF told us: “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. A billing adjustment may be applied to remove any charges we cannot request payment once we have the outcome of the review.”
This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute by emailing [email protected] with the subject line “Money Problem”.
