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Ofgem announces 12-month back-billing limit

UK energy watchdog Ofgem have announced a ban on energy providers back-billing customers for energy used over a year ago.

Unless a customer has purposely prevented their meter from being read, energy suppliers will no longer be able to charge for electricity or gas prior to that 12-month period. This is likely to affect those who experience incorrect billing, whether due to estimated meter reads or faults with the energy supplier’s system.

Ofgem have reiterated that providing energy suppliers with regular, actual meter reads and notifying them when moving in or out of a property allows for accurate billing; eliminating the risk of ‘shock bills’ which could lead to customers being out of pocket.

Otherwise, customers are urged to take advantage of the Smart Meter Roll-Out, where customers benefit from automatic, accurate meter reads being sent to the energy supplier and used for billing.