Consumer finance expert Martin Lewis has thrown his support behind calls to limit energy back-billing to six months, arguing that energy firms should not take longer to provide accurate bills.
Speaking to the Energy Security and Net Zero Committee, Lewis criticised energy companies—particularly Scottish Power—for their handling of back-billing, a practice where suppliers charge customers for previously unbilled energy use.
Why Back-Billing is a Problem
Under current Ofgem rules, energy firms cannot back-bill customers for usage older than 12 months, provided the customer has not caused any unreasonable delays in providing meter readings.
However, Lewis pointed out that these rules are not always enforced properly, leaving customers vulnerable to unexpected charges. He criticised Ofgem for not providing clearer guidelines on what qualifies as a reasonable exemption.
“We have a systemic problem of lack of enforcement over the back-billing rules,” he said. “Some firms are taking advantage of loopholes, even when customers are in credit.”
Scottish Power Called Out for Poor Billing Practices
Lewis singled out Scottish Power for having a long history of abominable billing practices, although he noted that other firms have also been guilty of unfair back-billing.
“Scottish Power has always been particularly abominable,” he stated. “There’s a lack of care, and a lack of being really strict in saying that you can’t back-bill customers unfairly.”
In response, a Scottish Power spokesperson defended the company’s record, claiming that they have significantly improved their customer service and now rank as the best big supplier according to Citizens Advice.
Why a Six-Month Limit is Needed
Lewis argued that in a digital age with smart meters providing instant energy readings, there is no reason why firms should take more than six months to issue correct bills.
“Why should a firm take over six months to give you a correct bill? I can’t see any reason for that,” he said.
When asked if he supported a stronger crackdown on back-billing practices, Lewis replied: “Yes, I would like to see more specific rules from Ofgem.”
What This Means for Households
With energy bills remaining high, wrongful back-billing can add unnecessary financial strain on households. Lewis noted that the issue is becoming more prominent because bills themselves have increased, making unexpected charges even more painful for consumers.
If Ofgem tightens the rules on back-billing, households could be better protected from unfair charges. Until then, customers should:
- Check their energy statements regularly to spot any unusual charges
- Submit accurate meter readings to ensure their bills reflect actual usage
- Challenge any back-billing claims that seem unfair or exceed 12 months
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