Consumer champion Martin Lewis has urged energy firms to limit back-billing to six months, criticising Scottish Power for its handling of past charges.
Calls for Stronger Rules on Energy Back-Billing
Martin Lewis has thrown his support behind calls to cap energy back-billing at six months, arguing that firms should not take more than half a year to send correct bills in the modern digital age.
Speaking to MPs at the Energy Security and Net Zero Committee, Lewis highlighted the lack of enforcement around current back-billing rules. At present, energy suppliers are not allowed to charge customers for energy used more than 12 months ago, unless there was an unreasonable obstacle preventing them from billing correctly. However, Lewis pointed out that this exemption is vague and often misused by suppliers.
Scottish Power Criticised for Billing Practices
During his testimony, Lewis singled out Scottish Power as being “particularly abominable” in its past handling of back-billing, citing a history of poor billing practices.
“I think there is just a lack of care and a failure to enforce strict rules on back-billing,” he said.
Lewis also highlighted a loophole where energy firms claim they are entitled to take back-billed charges from a customer’s credit balance, even when they know the back-billing is incorrect.
“That is not fine,” he stressed, calling for clearer guidance from Ofgem on what constitutes a legitimate exemption to back-billing restrictions.
Why Back-Billing Needs Reform
Lewis argues that, with the rollout of smart meters providing instant energy usage data, there is no excuse for energy companies to 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, urging Ofgem to introduce stricter rules.
What This Means for Consumers
Many households are seeing higher energy bills, making back-billing an even bigger issue. If energy suppliers continue to charge customers for past mistakes, it could add to the financial strain on families already struggling with rising costs.
If you’re worried about unexpected energy bills, there are government-backed schemes that could help you lower your energy costs.
✅ Call Energy Advice Helpline for free on 0800 802 1869
✅ Complete our short eligibility checker to see if you qualify for free home energy improvements
Comments
I am hoping that I qualify because my house is very cold
Hi Louisa,
We have our fingers crossed for you! If you have applied, please keep us updated. If there is anything else we can help you with, please reach out to us!
I am keeping my fingers crossed that I pass. Thank you