UK energy customers may be owed refunds for overbilling

Financial experts and politicians in the UK are warning energy customers about potential overcharges that could lead to thousands of pounds owed. This concern has arisen as many consumers may have paid more than necessary for their energy bills, particularly during a time of rising energy prices. A recent investigation on BBC Radio 4's Money Box highlighted the issue of back billing. Despite a ban in 2018, many customers continue to receive bills for energy used more than a year ago. Labour MP Bill Esterson has taken action by contacting Ofgem, pressing for help for affected constituents and calling attention to the serious "breaching of legislation" by energy companies. Martin Lewis, a well-known financial advisor, emphasized that thousands of consumers are facing this issue. He noted that some customers have unexpectedly received backdated bills, leading to confusion about their energy credits, which have also been used to cover these charges. The Guardian's investigation found that energy providers, especially British Gas's parent company Centrica, have been the most complained about, with Citizens Advice reporting over 60,000 consumer grievances in 2024. Many complaints arise from inaccurate billings attributed to "systemic issues" within energy companies. British Gas stated that back billing should only cover errors found within the last 12 months. They added that this rule may not apply if customers engage in obstructive behavior that hinders accurate billing. Esterson's letter to Ofgem expressed concern that companies continue to issue unlawful back bills and can pressure customers into seeking resolution through the Ombudsman. Dhara Vyas, the chief executive of Energy UK, acknowledged the difficulties consumers face when challenging energy suppliers. She highlighted that mistakes can occur in the billing process and emphasized the importance of taking consumer complaints seriously. For those who believe they have overpaid, it is advised to first complain to the energy supplier directly. If unsatisfied with the response, customers can escalate the matter to the Energy Ombudsman. Additionally, individuals can request their personal data from the supplier, which may provide more information about any discrepancies. Citizens Advice Bureau is also available to assist with complaints.