Ofgem Cracks Down on Unlawful Back Billing: Energy Firms Under Scrutiny

In a decisive move, Ofgem, the energy regulator, has taken a stand against electricity and gas suppliers who continue to issue “back bills” to customers for energy consumption exceeding a year ago, a practice deemed illegal since 2018. The regulator is demanding transparency from supplier chief executives regarding the scale of this issue, with many cases still impacting thousands of consumers. Ofgem’s Senior Manager, Tim Jarvis, expressed frustration over the ongoing occurrences of back billing, affirming that suppliers could face fines for systematic violations.

The urgency of the situation is underscored by a significant increase in complaints received by Citizens Advice, swelling from 47,000 in 2023 to nearly 60,000 in 2024 regarding billing issues. Meanwhile, Energy Secretary Ed Miliband has urged Ofgem to confront these unlawful practices. Consumers who receive illegal back bills are advised not to pay and to communicate with their suppliers, utilizing provided templates from Citizens Advice to state their case. This developing situation highlights the regulatory body’s commitment to enforcing consumer protections and holding energy companies accountable for their billing practices.