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

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

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.

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. However, microbusinesses may benefit from back billing rules.

A microbusiness is typically defined as one that meets any of the following:

-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

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

Monitor energy use: Compare usage against billed amounts to catch discrepancies early.

Keep meter readings: Maintain records of meter readings and communications with suppliers.

Submit monthly meter readings- Keep records of meter readings and communications with suppliers.

Report any suspected meter faults to the supplier- Contact your supplier immediately if you believe there is a fault with your meter

For tailored guidance on energy disputes, contact Energy Solicitors today.