Hayley Jarvis was shocked when she received a £5,768.09 energy bill in early January for usage that occurred more than two years ago.
The bill, which covered the period from June 2021 to June 2022, was a classic case of “back billing,” a practice where energy suppliers issue charges for energy used over 12 months ago.
However, such billing is prohibited under regulations set by the energy regulator Ofgem, which outlawed back billing in 2018. In Hayley’s case, the overwhelming sum would have taken her an incredibly long time to pay off.
“It was a vast amount of money that would have taken me an incredibly long time to pay back,” she said, expressing her distress over the situation. But her case is far from unique.
Radio 4’s Money Box has revealed that 3,308 individuals lodged complaints with the energy ombudsman in the 12 months leading up to September 2024 due to receiving these unwarranted bills.
The true number of complaints is expected to be much higher, as only cases unresolved by suppliers reach the ombudsman. Citizens Advice reported a significant surge in billing-related complaints in 2023, with 47,000 issues reported, rising to nearly 60,000 in 2024.
The complaint volumes highlight the growing problem of billing errors and customer dissatisfaction within the energy sector.
Matt Lynch, another victim of back billing, recounted his ordeal of receiving a £1,665 bill for energy used over three years ago, just days before Christmas.
“How do you find £1,600 with very little notice? They were going to take the money without even telling me,” Matt said, sharing his frustration after discovering the bill buried in his junk mail.
Both Hayley and Matt fought tirelessly with their energy suppliers, making numerous calls and emails to get their bills rescinded. However, the bills should never have been sent out in the first place, as per Ofgem’s back billing rules.
Citizens Advice’s Alex Belsham-Harris emphasized the importance of intervention from the regulator, saying, “These bills shouldn’t be sent out in the first place. Once someone does identify this as an issue for them, if they get in touch with their suppliers, then that should be the end of it.”
Ofgem, in response to the issue, asserted that customers should not be burdened with the task of rectifying incorrect bills.
It is the supplier’s responsibility to handle complaints promptly and effectively. The regulator further indicated its commitment to reviewing the rules around billing to prevent such practices in the future.
Energy UK, the industry representative body, echoed the sentiment, stating that suppliers have a duty of care to customers and are working to improve their billing practices.
E.On Next, the company responsible for sending the back bills to Hayley and Matt, acknowledged the mistake.
In a statement, E.On said, “Human error led to a back bill being sent out,” and assured that the company was reviewing its back billing processes to improve customer service.
Hayley’s main concern, however, goes beyond her own situation. “I just think it’s actually quite sad because I’m in a position to fight it, but not everybody would be,” she noted, highlighting the vulnerability of elderly, isolated, or vulnerable customers who might feel pressured to pay these erroneous bills.
She warned that these individuals may not have the knowledge or resources to contest the charges, making them more susceptible to unfair billing practices.
As back billing continues to affect more consumers, it is clear that stronger regulatory oversight and improved supplier practices are needed to ensure that customers are not subjected to unfair and costly charges for energy they used years ago.
