A woman was hit with a staggering £4,500 energy bill – for an address she hadn’t lived in for two years.
Melissa Penn, who moved out of her former property in Rugby in September 2022, faced a stressful appeals process with her energy supplier that lasted four months.
Ms Penn said she felt pressured to pay for charges she did not owe and encountered numerous obstacles while trying to resolve the issue. She told BBC Money Box about her ordeal.
She said: “They were threatening to take my direct debit up to excessive amounts [to pay the bill], which I didn’t have funds to pay for at the time.”
Under a policy introduced by Ofgem in 2018, energy companies cannot bill customers for usage more than 12 months old.
These rules were introduced in 2018 to ensure accurate billing and to protect consumers from unexpected costs.
However, Ms Penn’s case is not an isolated incident. As many as 3,308 backbilling cases were reported to the energy ombudsman in the 12 months leading up to September 2024.
After months of persistence, Ms Penn successfully challenged the bill, which was eventually cancelled.
Energy UK claims that back-billing accounts for only a small portion of complaints, but customer experiences suggest the impact can be significant.
Ms Penn said the whole process was “extremely long and stressful.”
Another energy customer shared with BBC Money Box that her supplier charged £2,000 for usage beyond the 12-month deadline.
Jennifer Seals, who had to “fight” against her persistent supplier, noted that while she could stand up for herself, she fears that more vulnerable people may not know they can dispute these bills.
A spokesperson for Ofgem said: “Our rules around back-billing are clear. Customers should not be pursued by their energy supplier for money they do not owe.
“As we announced as part of our Consumer Confidence programme earlier this year, we are reviewing supplier billing practices, including billing accuracy.
“We are also looking closely at supplier compliance with back-billing rules to make sure customers get the service they are entitled to.”
