Martin Lewis has called for urgent reform of energy back-billing practices, accusing some suppliers of unfair tactics and naming Scottish Power as a repeat offender.
Back-billing is when energy firms issue charges for energy used more than 12 months ago. Under current rules, this is only allowed if there has been an “unreasonable obstacle” preventing the company from billing sooner—such as when a customer refuses access to their meter. But Lewis says the rule is too vague and being exploited.
Speaking to MPs at the Energy Security and Net Zero Committee, the Money Saving Expert founder said, “I think we have a systemic problem of lack of enforcement over the back-billing rules, over a flaccid energy ombudsman.”
He warned that companies are sometimes back-billing even when they know there hasn’t been a valid reason to do so, and that more decisive action is needed to protect customers.
Lewis also gave a real-world example to MPs of a case where someone wasn’t available for a meter reading, then allegedly missed further letters from the supplier. He asked, “Has the company done enough? The company will clearly say it’s done enough. The consumer will clearly say it hasn’t. Where is the dividing line?”
He added that in the absence of stronger enforcement, suppliers are making their own judgement calls—often to the detriment of the customer.
Scottish Power was singled out during the hearing. “I know that I can say this here without any worries,” said Lewis. “Scottish Power has been particularly abominable of its billing over the years. I hope it’s improved, but historically, it’s been very poor.”
Lewis also backed proposals to cut the back-billing window from 12 months to six, arguing there’s no reason for energy companies to take longer in today’s digital world. “We’re trying to have smart meters installed that can give you an instant reading of what is going on. Why should a firm take over six months to give you a correct bill?”
This discussion comes as UK households face another rise in energy costs. Ofgem’s energy price cap will increase again in April, bringing the average annual energy bill to £1,849—a 6.4% rise from January’s figure.
Committee Chair and Labour MP Bill Esterson, who had his own experience with being back-billed beyond the 12-month limit, said many people don’t have the time or knowledge to challenge unfair charges. “The personal stories we hear about miss all of the people who simply paid the bill presented to them,” he told Ofgem’s CEO.
In response to Lewis’ criticism, a Scottish Power spokesperson defended their recent progress: “We have worked hard and made great strides in customer service. Citizens Advice ranked us as the best big supplier.”
With bills continuing to rise, Martin Lewis’ intervention has once again highlighted the need for clearer rules, stronger enforcement, and fairer treatment of energy customers.
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