Energy companies to be BANNED from imposing 'catch-up' bills
HOUSEHOLDERS will no longer face huge bills for energy used more than a year earlier, it was announced yesterday. In May Ofgem will ban companies from imposing “catch-up” bills if meter readings are higher than estimated charges, or there have been mistakes in issuing bills.
Ofgem will ban companies from imposing “catch-up” bills in May this year
Accurate billing is an essential part of customer service and large catch-up bills could leave consumers in debt, the watchdog said.
The average back-bill was £1,160 last year but extreme cases have seen bills in excess of £10,000.
Citizens Advice says that 2.1 million people were affected in 2016.
Ofgem’s Rob Salter-Church said: “It’s unfair that consumers should be left out of pocket when, through no fault of their own, they’re issued with a shock bill.
“So we’re taking action and banning suppliers from issuing back-bills beyond 12 months, where it’s not the customer’s fault.
“This sends a strong message to suppliers to improve the accuracy of the bills they send customers.”
Back-bills result from problems with a billing system or from suppliers estimating bills until they use a meter reading.