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- Regulator says there is no consistency in the way customers are back billed
- Firms signed a voluntary agreement in 2007 when there were 11 on the market
- Smart meters mean the 12-month back-billing window may be reduced further
- Ofgem has written an open letter proposing new rules and is seeking responses
Energy providers are set to be banned from charging customers for gas and electricity used more than 12 months ago, under new rules proposed by Ofgem. This would mean if a customer has been paying an incorrect amount for their energy, a provider won't be able to bill them for anything they owe from a year ago. The new back-billing code will replace the current voluntary agreement which was created in 2007, the energy regulator says. The problem of back billing often arises when estimated bills are being used. As these bills are estimated, often they are incorrect and when an actual meter reading is given, it may be the case that the customer has been paying too little or too much. If they're paying too little, providers can charge them for the extra energy used but they should only do this for up to 12 months previously, according to the current agreement from Ofgem......Read more here