Avoid Unexpected Energy Bills: What Businesses Need to Know About Back Billing

What Is Back Billing in the Energy Sector?

In the complex area of energy regulation, businesses must remain alert to the amounts they are being charged for gas and electricity.  If the energy supplier has not provided accurate billing your business may be able to rely on back billing rules.

Back billing occurs when an energy supplier issues a bill for energy that was used but not previously charged correctly. For many businesses, a sudden and significant bill for past energy.

Why Does Back Billing Happen?

Back billing refers to a situation where an energy supplier retrospectively bills a customer for energy that was previously unbilled or underbilled. Issues can be caused my estimated readings and faulty meters.

What Are Back Billing Rules?

The energy market is regulated by Ofgem. There are strict rules on back billing, particularly for domestic customers, these rules cap retrospective charges for a period of 12 months.

While most business customers have limited protection, there are some exceptions. Microbusinesses may benefit from back billing restrictions similar to those offered to domestic customers.

Is Your Business a Microbusiness?

Your business may qualify as a microbusiness if it meets any of the following criteria:

• Employs fewer than 10 people

• Has an annual turnover or balance sheet total of less than €2 million

• Consumes less than 100,000 kWh of electricity or 293,000 kWh of gas annually

If your business meets one or more of these criteria, you may have grounds to challenge a retrospective energy bill.

How to Reduce the Risk of Back Billing

To reduce the risk and impact of back billing, businesses should:

• Monitor energy use: Compare consumption against invoices regularly.

• Keep meter readings: Record monthly readings and supplier communications.

• Submit readings monthly: Provide regular updates to your supplier.

• Report faults immediately: Alert your supplier if you suspect your meter is faulty.

Get Expert Legal Support on Energy Back Billing

If your business has received a backdated energy bill or needs advice on back billing protections, Energy Solicitors can help.

Contact us today for tailored legal guidance on energy disputes.