At a glance
Back billing is when a supplier sends a ‘catch-up’ bill for past energy usage.
Suppliers generally can’t charge you for energy used over 12 months ago if they were at fault.
You’ll still have to pay if you behaved ‘unreasonably’, like preventing meter readings.
Support is available if you can’t afford to pay an energy back bill.
What is back billing?
A back bill is essentially a catch-up bill sent by your energy provider for any gas or electricity that you’ve used but haven’t yet paid for.
Mistakes, errors or inaccurate readings could mean you don’t receive an accurate energy bill for a while.
Unfortunately, this means you could get a nasty surprise when things are corrected, and you’re sent an accumulated bill out of the blue.
The idea of getting an unexpected energy bill for hundreds – or even thousands – of pounds is worrying. So, it’s important to know your rights and understand how gas and electricity back-billing rules work.
What are the back-billing rules?
Under the back-billing policy set by energy regulator Ofgem, energy companies can usually only back bill you for gas and electricity used within the past 12 months.
You can’t be charged for energy used more than a year ago if the supplier:
Never sent you an accurate bill for that period, despite you asking for one
Didn’t inform you about any charges via a statement of account
Set your direct debit too low to cover any charges due.
That means that if you were billed inaccurately for your gas or electricity, your energy provider has a year to bill you correctly for what you owe. Otherwise, you can refuse to pay.
When don’t back-billing rules apply?
Back-billing laws won’t apply if you behave unreasonably. For example, if you:
Deliberately block your energy provider from collecting accurate meter readings
Ignore requests for payment from your supplier
Steal gas or electricity.
What should I do if I haven’t received an energy bill in a while?
If you haven’t received an energy bill for some time, or since moving home, it’s important you report it to your energy supplier directly, as soon as possible.
Remember – if there’s no bill, it doesn’t mean your energy provider has forgotten and stopped charging you for gas and electricity.
Choosing to take advantage of this kind of oversight rarely works in the customer’s favour, so it’s best to let your energy provider know as soon as possible if you haven’t received a bill.
Even with back-billing regulations in place, you could still get hit with a back bill for up to 12 months of energy usage. And with energy prices as high as they are, that could be a huge amount.
Why might I not receive my energy bills or be under-billed?
There are three main reasons you might not have received your energy bills on a regular basis:
Estimated meter readings – if you haven’t been sending your energy provider regular meter readings, your bills will be based on estimates, which could mean you’re underpaying. If you’re using more energy than you’ve paid for, you’ll eventually get a bill for the amount you owe.
Cancelled direct debit – if your direct debit has been accidentally cancelled, you may not have been sent a bill for a while. Once the error is spotted, you’ll receive a bill for missed payments you owe.
Wrong meter number – it could happen that you’ve been charged under the wrong meter number. Once the mistake is spotted, you could receive a hefty bill for the correct amount of energy you’ve used.
What should I do if I receive a back bill?
If you receive a back bill from your energy supplier, don’t just ignore it. You’re still expected to pay for the energy you’ve used in the time period allowed by the back-billing rules.
If it covers a period longer than the back-billing rules allow, you should contact your supplier and explain your rights. If you’ve previously tried to contact your supplier about not receiving accurate bills, include this in the letter.
To make things easier, you can use the back-billing letter template provided by Citizens Advice.
Your energy supplier should send you a new bill for the correct amount. If they continue to insist you pay a back bill over 12 months old, make a formal complaint.
What if I can’t afford to settle my back bill?
If you simply can’t afford to pay the full amount owed on the back-bill, it’s important that you let your supplier know.
Most energy providers will offer you a payment plan that allows you to pay back your debt in smaller amounts over the same length of time that the debt was accrued.
For example, if you receive a back-bill for a period of six months, you should be given six months to pay the outstanding amount back in full.
Suppliers have to take into account what you can afford, so make this clear to them.
If you’re worried about debt, go to the MoneyHelper website. This is a government-backed service offering advice on money issues, including managing energy bills.
How can I avoid back billing?
You can take steps to help prevent back billing through these methods:
Get a smart meter – this sends regular meter readings to your supplier, so you should be billed accurately.
Submit manual readings – if you don’t have a smart meter, you should take regular readings and send them to your supplier yourself.
Check your energy bills – review the details carefully. For example, if you get an estimated bill, make sure it’s close to your actual meter reading. If you pay by direct debit, check that the right amount is being paid each month or quarter.
Update suppliers when moving – take a final meter reading at your old home so your account can be updated and closed. Then contact your new supplier so you’re not being charged for energy the previous occupant used.
How do I find out who my energy supplier is?
If you haven’t been receiving your energy bills and don’t know who to contact, there are ways to find your supplier.
For gas, you can use the Meter Point Administration’s online search tool
For electricity, you can use the Energy Networks Association postcode search tool.
See our guide to finding out who your supplier is for more in-depth information.
If you’re looking for a new energy supplier, we can help you compare tariffs.
FAQs
Can a smart meter prevent back billing?
A smart meter can prevent back-billing because it automatically takes regular readings and sends them directly to the energy supplier. This means you should receive accurate bills, and you’ll only pay for the energy you use.
Another benefit is that you can see the cost and amount of energy you’re using in real time on the in-home display (IHD) that comes with your smart meter.
If you haven’t already been offered a smart meter by your energy supplier, you can contact them and request one. Installation is free of charge.
How do I complain about my energy supplier?
If you feel you’ve been treated unfairly by your energy supplier for back billing or any other issues, you should contact them and explain why.
Energy suppliers have a complaints process to follow, and they should contact you within eight weeks.
If you don’t hear back from them within this time, or you’re not happy with their response, you can take your complaint to the Energy Ombudsman.
Citizens Advice offers help and support in presenting your complaint. You can call its helpline on 0800 223 1133 or chat with an advisor online.
Do I legally have to pay for gas and electric?
In most cases, you’ll have to pay for any gas or electricity you’ve used. That’s true even if you didn’t sign a contract with your energy provider.
There are a few exceptions:
If you were sent estimated bills or didn’t receive a bill, you’ll only have to pay for the gas and electricity you’ve used in the past 12 months, under Ofgem’s back-billing rules.
If you pay your landlord for energy, you don’t have to pay the energy supplier too. Redirect the energy provider to your landlord.
If you receive a bill for energy you didn’t use (for example, for dates you weren’t resident at the property) or if someone signed you up to a contract without your consent, you’ll need to complain to the energy provider and back up your claim.
How long can an energy company chase debt?
If an energy company has properly informed you of an accurate bill, and you fail to pay, they can legally pursue the debt for up to six years.
If you’re struggling with debt, you can get free and comprehensive support from a trained, experienced debt advisor.
Can I refuse to pay my electric or gas bill?
You can’t refuse to pay your energy bill without a legitimate reason.
If you don’t pay what’s owed, your supplier could take action to recover the money. This could include passing the debt onto a debt-collection agency or, as a last resort, even disconnecting your supply.
Under Ofgem’s back-billing rules, you can refuse to pay your electric or gas bill if you receive a back bill for electricity or gas usage that’s for more than a year ago. But this only applies if the error was on the supplier’s part.
Looking for something else?
Over the past decade, Kate has worked in various industries, including company secretarial, small business support and property investing.
Her move to financial services in 2022 not only helped her find her niche in personal finance writing, but also just how alienating finance can be. She’s now motivated by making everyday money a piece of cake for everyone, helping her readers feel informed and in control.
Kate now specialises in savings and current accounts as well as broadband, mobile and energy products.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Dan is focused on helping people and businesses get the right deal for their energy in a volatile market. For more than 20 years, he has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
