Backbilling Ban to impact microbusinesses

Microbusinesses included in backbilling ban on energy suppliers

Ofgem has dealt the UK’s energy suppliers a blow by preventing them from backbilling customers for incorrectly-billed gas and electricity usage from more than 12 months ago.

This will predominantly help residential consumers, but also applies to microbusinesses.

The move will become law from May 2018 for residential/domestic customers and in November 2018 for microbusinesses.

The backbilling ban will prevent suppliers from charging customers for usage that has been incorrectly billed from more than 12 months ago, reducing the chance of consumers and small businesses receiving ‘surprise’ energy bills that they have no way of planning for (or, in many instances, paying).

This is the latest in a series of government-led restrictions imposed on energy suppliers, including the headline-grabbing ‘energy price cap’ which is still in the process of being planned.

It is another incentive for suppliers to ensure smart meter roll-out across the country is on-track, meaning that they get accurate consumption data and are able to bill customers 100 per cent correctly.

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