Energy back-billing project

We have launched a project to examine the regulatory framework governing energy back-billing.

Our minded-to position is to introduce new licence obligations for suppliers to strengthen consumer protections in this area.

Energy back-bills: Background

In 2007, domestic energy suppliers (active at that time) signed up to a voluntary commitment to not back-bill for energy used more than 12 months previously, if the supplier was at fault for not sending a bill or billing incorrectly. Since then, the energy supply market has expanded from 11 suppliers to over 50 currently and we are concerned that the voluntary principle is not being applied consistently, and that not all suppliers have appropriate back-billing protections in place.

Back-billing project scope

Our project will consider:

  • the types of consumers any new licence obligations will need to protect (i.e. domestic alone or both domestic and non-domestic)
  • whether it is appropriate for different limits to apply for consumers with differing metering technology
  • the level of detail any new licence obligations need to contain (should we decide they are necessary).

Next steps

On 3 April 2017 we published an open letter to outline our concerns and give notice of our minded-to decision. The letter includes information on the current back-billing policies of energy suppliers for smart meters.

We are currently asking for initial views on our minded-to decision by 28 April. Details of how to have your say are outlined in the open letter.

We will ask for further comment on detailed proposals in the summer of 2017, with a view to introducing new rules in the winter.

You can view all publications and outputs relating to the Back-billing Project in the publications and updates list below.

Publications and updates

  • Published: 5th Mar 2018
  • Decisions
  • 3 Associated documents
Ofgem has decided to modify electricity and gas supply licence to introduce rules on backbilling.

  • Published: 16th Nov 2017
  • Closed: 18th Dec 2017
  • Consultations and responses
  • 32 Associated documents
This statutory consultation invites views on our proposal to introduce a licence obligation around backbilling.

  • Published: 3rd Apr 2017
  • Open letters and correspondence
  • 11 Associated documents
See our open letter notifying of our intention to launch a project to protect consumers from back billing