Rugby woman spent months trying to cancel out-of-date energy bill

[dutchman]

It took Melissa four months to get her invalid bill overturned



Melissa Penn had moved out of her house in Rugby two years earlier, so she was surprised when she was sent a bill for £4,500 for energy used at her old address, plunging her into a stressful appeals process to resolve the problem.

She does not think the bill is accurate, but even if it were, rules around "back-billing" mean people like Melissa cannot be asked to pay a new bill, if the energy was used more than 12 months ago.

Energy UK, which represents suppliers, says back-billing account for "a relatively small proportion" of complaints.

But many customers are still experiencing what has been described as "outrageous" behaviour by the energy companies.

After Melissa's initial bill for £4,500 in September 2024, she says she received letters trying to charge her varying amounts, all for a property she had moved out of in 2022.

"They were threatening to take my direct debit up to excessive amounts [to pay the bill] which I didn't have funds to pay for at the time," she told the BBC.

She felt "numerous barriers" where put in her way to prevent her from taking up the matter, rather than simply paying.

She refused to give up and finally, after four months, the bill was cancelled.

"The whole process was extremely long and extremely stressful," she says.

Melissa is one of hundreds of people who contacted the BBC about the problem of back-billing - or being charged for energy more than a year on from its consumption.

They got in touch with BBC Radio 4's Money Box after it revealed 3,308 people had complained to the energy ombudsman about back-billing in the 12 months to September 2024.

Some of the cases Money Box has investigated appear to be charges for energy that was used. Other bills are strongly contested by customers, who say the bills do not accurately reflect their usage.

Accurate or not, once the 12-month billing deadline has passed, customers cannot be sent a new bill for that energy.

The rule against back-billing was introduced in 2018 in part to ensure energy suppliers keep their billing processes up-to-date. Otherwise people could be asked for large payments, accumulated over long periods, which they cannot afford.

Labour MP Bill Esterson, chairman of parliament's Energy Security and Net Zero select committee has taken up the issue and has written to the energy regulator, Ofgem, external, highlighting what he sees as "evidence of significant wrongdoing" and calling for them to take action.

"Energy companies are being outrageous," he says. "They know it's wrong, they know it's a problem and they can fix it."

A spokesperson for Ofgem said: "Our rules around back-billing are clear.

"Customers should not be pursued by their energy supplier for money they do not owe.

"As we announced as part of our Consumer Confidence programme earlier this year, we are reviewing supplier billing practices, including billing accuracy.

"We are also looking closely at supplier compliance with back-billing rules to make sure customers get the service they are entitled to," they said.

[dutchman]

I was sent a back bill for a house I didn't even live in, and threats of legal action if I didn't pay it!