Energy Company Overcharging My Bills

People who believe they are being overcharged often start by submitting their own meter readings to the supplier to ensure bills are not based on inaccurate estimates. Requesting a meter accuracy test is another common step — if the meter is found to be faulty, the supplier may need to recalculate bills. It is generally advisable to raise the issue as a formal complaint with the energy supplier first, as they are required to have a complaints procedure. If the complaint is not resolved within eight weeks, or a deadlock letter is issued, the matter can be escalated to the Energy Ombudsman, whose decisions are binding on the supplier.

Common situations include: receiving unexpectedly high estimated bills, a large catch-up bill (back-bill) after a period of inaccurate readings, bills that do not match smart meter readings, being charged at the wrong tariff rate, standing charges being applied incorrectly, and bills continuing after switching to a new supplier.

Energy suppliers are licensed by Ofgem under the Gas Act 1986 and the Electricity Act 1989. Ofgem's supply licence conditions require suppliers to take all reasonable steps to ensure bills are accurate and based on actual meter readings where possible. The back-billing rules (introduced by Ofgem) generally prevent suppliers from charging for energy used more than 12 months ago if the supplier was at fault for not billing correctly. The Consumer Rights Act 2015 also applies to the supply of energy as a service.

People in similar situations often consider: submitting regular meter readings to avoid estimated bills, requesting a meter accuracy test, checking whether back-billing rules apply to limit the period they can be charged for, raising a formal complaint with the supplier, escalating to the Energy Ombudsman if the complaint is unresolved after eight weeks, and contacting Citizens Advice for support with the process.

Common mistakes include: ignoring high bills and allowing a large balance to accumulate, not submitting regular meter readings to the supplier, not following the formal complaints procedure (which is usually required before the Ombudsman will consider the case), not being aware of the 12-month back-billing protection, and switching suppliers while a dispute is ongoing without first resolving the billing issue.