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Citizens Advice urges Ofgem to limit back-billing to six months for smart meter customers

Citizens Advice has called on Ofgem to cut the back-billing window to six months for smart meter customers, after helping with more than 52,000 energy billing problems in 2024.

A newspaper on a kitchen table beside a model of rules and regulation

Citizens Advice has urged Ofgem to strengthen consumer protections on energy billing, proposing that suppliers be barred from charging for energy used more than six months earlier where a smart meter is fitted. The charity published the call on 29 November 2024 alongside figures showing it helped over 52,000 people with energy bill problems between January and October this year, equivalent to one person every two minutes1.

That total is an 83% increase on the same period in 2020, when the figure was 29,000, though it is down from a peak of over 55,000 in 20231. Since March 2024, billing issues have been the single most common issue encountered by Citizens Advice consumer service advisers, and contacts to its local offices about billing rose by nearly 250% over the same period1.

Nearly a quarter (24%) of billing issues involved a shock or catch-up bill. Citizens Advice estimates the average catch-up bill in the last year at over £2,500, against just under £1,700 in 2022, and puts the rise at more than £800 over three years1. Under current rules, suppliers can charge for energy up to 12 months after it was used, provided they have not previously billed for it1.

MeasureFigure
People helped with billing issues, Jan to Oct 2024Over 52,000
Same period in 202029,000
Share involving a shock or catch-up bill24%
Estimated average catch-up bill, 2023-24£2,525
Estimated average catch-up bill, 2021-22£1,694
Billing issue clients with a disability or long-term health condition67%
Billing issue clients also helped with energy debt34%
Estimated or inaccurate billing clients with a smart meter49%

The charity also reported service failures: at least one in five cases involved problems such as agents failing to record important information, or customers having to explain complex billing matters repeatedly to different representatives1. Two-thirds (67%) of people who sought help with a billing or meter reading issue had a disability or long-term health condition1. One in three (34%) of those advised on a billing issue were also helped with energy debt, and one in five (21%) of those helped with affordability issues also had a billing problem1.

Dame Clare Moriarty, chief executive of Citizens Advice, said:

"Consumers simply can’t afford to pick up the tab when something goes wrong. Ofgem must act to protect consumers by limiting back-billing and raising service standards, so people struggling with billing issues get the help they need."
Citizens Advice1

The charity's report lists further proposals: extending the Guaranteed Standards of Performance to cover smart meter equipment working properly, better enforcement by Ofgem where suppliers miss billing standards, clarification of existing billing guidance, industry-wide work on billing, and a new Consumer Duty on suppliers2. It notes that 49% of people it helped with an estimated or inaccurate billing issue had a smart meter, and that its Get Smarter research found 20% of people with smart meters were still providing regular meter readings1.

Why it matters for households

The back-billing rules set how far back a supplier can charge for energy it failed to bill at the time. At present that window is 12 months; Citizens Advice wants it halved for smart meter customers, on the argument that a meter sending readings automatically gives suppliers no reason to bill late1. For a household, the difference is the size of the bill that can arrive without warning, and the report puts the average catch-up bill at £2,525 in the last year1.

The link between billing and debt is the second point. A third of people advised on billing were also helped with energy debt, and the charity says an unexpected or incorrect bill can push a tight budget into unmanageable territory1. Billing accuracy also bears on a household's ability to judge its own consumption and costs, which is the practical basis of energy independence at home2.

Where a bill is disputed, the routes are the supplier first, then the Energy Ombudsman, with Citizens Advice acting as the statutory consumer advocate for energy1. Its complaints and redress page sets out how those stages fit together, and there is separate guidance on complaining about a back bill. The charity's consumer service can be reached on 0808 223 1133, or 0808 223 1144 for Welsh language speakers1.

What happens next

Citizens Advice has not reported a date for Ofgem's response, and no timetable for a decision on the six-month limit has been published1. The proposals sit with the regulator, whose remit is set out in its role and coverage.

Sources2 cited
  1. Citizens Advice helps with an energy billing issue every two minutes - Citizens Advice, citizensadvice.org.uk
  2. Footing the bill: How the energy bill protection gap is putting strain on households - Citizens Advice, citizensadvice.org.uk