Martin Lewis, founder of MoneySavingExpert, has urged MPs to crack down on unfair back-billing practices by UK energy companies—calling out Scottish Power as “particularly abominable” when it comes to inaccurate and delayed billing.
Speaking to the Energy Security and Net Zero Committee, Lewis warned that energy companies are taking advantage of unclear rules to demand payments for energy used over 12 months ago, even when customers haven’t done anything wrong.
What is Back-Billing?
Back-billing is when an energy company charges a customer for energy they used months—or even years—earlier. Ofgem rules say suppliers shouldn’t back-bill beyond 12 months unless there’s been an “unreasonable obstacle” caused by the customer (such as refusing access for meter readings).
But Lewis pointed out the loopholes in this policy, saying it’s often left to the supplier to decide what counts as a “reasonable” excuse.
“The company will clearly say it’s done enough. The consumer will clearly say it hasn’t. Where is the dividing line?”
He shared real-life examples, including a case where a customer wasn’t home during a meter reading and later claimed not to have received follow-up letters.
Enforcement is Lacking
Lewis argued that some companies are knowingly back-billing customers unfairly, and the rules are not being properly enforced. He called the current energy ombudsman system “flaccid” and said customers are often left to fight their own battles—or worse, simply pay the bill without question.
Labour MP Bill Esterson, chair of the committee, agreed. He told Ofgem’s CEO that even as a policymaker, he had trouble resolving a personal back-billing dispute.
“Not everyone will have the time, energy or knowledge to push their case,” he said.
Scottish Power Named as a Repeat Offender
Lewis singled out Scottish Power for poor billing practices:
“Scottish Power has been particularly abominable over the years. I hope it’s improved, but I can say it without worry—because it’s true.”
In response, Scottish Power defended its record, saying it had made “great strides” in customer service and is now rated the best big supplier by Citizens Advice.
Time to Cut the Back-Billing Limit?
Martin Lewis called for the 12-month back-billing limit to be cut in half.
“We live in a digital age, with smart meters that provide instant readings. Why should it take more than six months to issue an accurate bill?”
With the energy price cap rising again in April—bringing the average annual bill to £1,849—the last thing customers need is a surprise bill for energy they used years ago.
What You Can Do
If you’re worried about billing errors or high energy bills, there are ways to take back control.
Start by submitting regular meter readings or using a smart meter to avoid estimated bills. But more importantly, check if you’re eligible for free energy-saving upgrades through government-backed schemes like ECO4 and the Great British Insulation Scheme.
These schemes could provide:
✅ Free solar panels
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All designed to cut your bills and make your home more efficient—at no cost to you if you’re eligible.
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