Consumer champion Martin Lewis has backed proposals to limit energy back-billing to six months, criticising Scottish Power for its past billing practices and calling for tougher enforcement from Ofgem.
Why Back-Billing Needs Reform
Back-billing refers to energy suppliers charging customers for energy used in the past, often due to incorrect or delayed billing. Under current rules, energy firms should not charge for usage beyond 12 months, unless an “unreasonable obstacle” has prevented accurate billing.
However, Lewis argued that there is a lack of clarity and enforcement, making it easy for suppliers to find loopholes.
“I think we have a systemic problem of lack of enforcement over the back-billing rules, over a flaccid energy ombudsman, which I think is a real problem,” Lewis told MPs.
Scottish Power Under Fire
Lewis singled out Scottish Power as one of the worst offenders in mishandling energy bills, stating that while no chief executive deliberately sets out to exploit customers, there is a lack of care and oversight in their billing systems.
Scottish Power responded, saying it had improved its customer service and was now ranked as the best big supplier by Citizens Advice.
Why Reduce the Back-Billing Period to Six Months?
Lewis argued that in the modern digital age, energy firms should not need more than six months to issue an accurate bill, particularly with the rollout of smart meters that provide instant readings.
“Why should a firm take over six months to give you a correct bill? I can’t see any reason for that,” he said.
He also called on Ofgem to introduce clearer, stricter rules to protect consumers from unfair charges.
How Could This Affect You?
If a six-month limit on back-billing is introduced, energy customers could:
✅ Avoid unexpected, large back-bills for older usage
✅ Have more protection from inaccurate or unfair charges
✅ Benefit from faster, more transparent billing processes
With energy bills already high, limiting back-billing could provide much-needed financial security for households.
Need Help Reducing Your Energy Bills?
If you’re worried about your energy costs, support is available to make your home more efficient and lower your bills.
🌱 We’re partnered with Energy Advice Helpline, who provide free support to upgrade your home and reduce your energy costs. Fill in Energy Advice Helpline’s eligibility checker to find out if you qualify.
