It is frustrating to discover an error in your energy bill. But if you face any inconvenience, there is an established process to dispute charges and potentially receive compensation. If you have been overcharged due to billing errors, incorrect meter readings, or supplier mistakes, you can always request compensation, and you will be protected by Ofgem to claim back what you are owed.
This is a simple and easy-to-understand guide that will walk you through the process of identifying billing errors, contacting your supplier effectively, escalating your complaint if necessary, and seeking appropriate compensation.
Your energy bill reflects what you have used, measured through meter readings, and multiplied by the price per unit set by your supplier. Billing also includes standing charges and potentially other fees. Try to understand how your bills are calculated. This is the first step in identifying potential errors.
Common reasons for incorrect bills include:
Before seeking compensation, it is important to spot errors on your energy bill. Here are the common issues and how to look out for them:
One factor for significant overcharging is billing based on estimated readings rather than actual meter readings. If the readings are based on actual readings, there will likely be no error. When estimates are repeatedly used, there is a higher possibility for inaccuracies to occur over time.
If the meter you have is not working properly, it may also provide incorrect readings, causing the energy company to bill you for energy you haven’t used. If you suspect your meter is faulty, request a check-up. Take photos of your meter readings as future evidence.
Another factor for billing disputes is unexplained or disproportionate price increases. Check for price increases and whether they align with what was communicated to you and comply with the energy price cap if applicable.
This is one of the most typical errors: getting charged under the wrong address. This can happen when flats in new-build properties are charged under the wrong meter number because addresses don’t correspond correctly to meter numbers in the national database.
One of the most important protections for energy consumers is Ofgem's back-billing rule:
You may not know there is a rule called the 12-month back-billing rule. This means energy suppliers cannot charge you for energy used more than 12 months ago if the billing error was their fault. This applies to both domestic energy consumers and microbusinesses. More information can be found on Ofgem's back-billing rules page.
The back-billing protection applies if:
However, this protection doesn't apply if you've acted unreasonably by:
If you believe your bill is incorrect, your first step should be to contact your energy supplier directly:
Always make sure to take current meter readings and submit them to your supplier. Keep records of the readings and the dates you submitted them to your supplier.
When contacting your supplier:
It is your supplier's responsibility to reply to you within eight weeks.
If your supplier hasn’t responded or resolved your problem after eight weeks, or you have received a deadlock letter stating that they can’t reach an agreement with you, you can reach out to the Energy Ombudsman.
The Energy Ombudsman is independent and can:
You must refer your complaint to the Energy Ombudsman within:
There are several ways to file your complaint with the Energy Ombudsman, such as via their website, phone, or by post.
When seeking compensation for incorrect energy billing, make sure you are aware that you may be entitled to:
If you're struggling to pay your energy bills while disputing charges:
If your business is dealing with back-billing issues, your suppliers may offer payment plans up to the length of the original back bill to help spread costs.
Taking proactive steps can help you avoid billing problems in the future:
Make sure that you provide meter readings regularly to your supplier so that your bills will be based on actual usage rather than estimates. This is important if you don’t have a smart meter.
Smart meters are designed to automatically transmit readings to suppliers, eliminating the need for manual reading and reducing the risk of billing errors. They are also capable of monitoring your energy consumption more effectively. You can find out more about smart meters from Smart Energy GB.
When moving into a new property or switching suppliers, ensure you:
Seeking compensation for incorrect energy billing requires patience and proper documentation. Thoroughly understand your bill, identify errors, and contact your supplier with clear evidence. If the issue isn’t resolved or addressed within eight weeks, reach out to the Energy Ombudsman without hesitation.
Remember the 12-month back-billing rule is there to protect you, and suppliers also should handle issues professionally and fairly. Having records of all communications is important too to minimize billing issues. With the right approach, you can effectively resolve billing disputes and ensure you only pay for the energy you use.
