Ofgem announced in February 2025 that it would fine suppliers that continue to breach its back billing rules, according to a House of Commons committee report published on 29 October 20251. The announcement was recorded in the report of the Energy Security and Net Zero Committee's inquiry into the cost of energy, which the committee launched in February 2025 to assess the causes of, and solutions to, high energy costs in the UK1.
The committee's report sets the announcement alongside other billing and consumer protection work. It states that Ofgem announced and consulted on plans in February 2025 to require every energy supplier to offer energy tariffs with low or no standing charges1. It also records that in December 2024 Ofgem consulted on a proposed, one-off Energy Debt Relief Scheme1, and that the committee's own recommendations include expanding the powers of the Energy Ombudsman so that consumers can achieve redress when billing issues occur1.
The report gives the wider billing context. It says domestic energy consumer debt reached its highest level since records began, totalling £4.15bn at the beginning of 20251. It states that a typical domestic consumer will pay around £1,720 for their electricity and gas every year under the Energy Price Cap, compared with £993 for a typical household in winter 2020-211. It adds that the Energy Price Cap is almost 75 percent higher today than in winter 2020-211.
On standing charges, the report says reforms made by Ofgem in July 2025 to the way costs are calculated under the Energy Price Cap meant the typical electricity standing charge paid by an average consumer fell by five percent compared with the previous cap period, while the typical gas standing charge fell nine percent1. It links earlier rises in standing charges to the implementation of Ofgem's Targeted Charging Review in 2022-23, which it says resulted in a significant redistribution of network costs from the unit rate to the standing charge1.
"In February 2025, Ofgem announced that it would fine suppliers that continue to breach its back billing rules."
The report does not set out the size of any fine, the suppliers concerned, or a timetable for enforcement. Those details have not been reported in the material available.
Why it matters for households
Back billing rules limit how far back a supplier can charge a household for energy that was used but not billed correctly. Enforcement against suppliers that breach those rules matters to a home's energy independence because an unexpected catch-up bill can undo months of budgeting and push a household into debt. The committee reports domestic energy debt at a record £4.15bn at the start of 20251, so the practical effect of enforcement is on whether households are asked to pay for a supplier's billing error.
Standing charges matter in the same way. They are paid regardless of how much energy a home uses, so they fall hardest on low consumption and low income households. The report notes that standing charges rose significantly over recent years, with a disproportionate impact on low income consumers1, and that the July 2025 cap reforms reduced typical standing charges1. Ofgem's separate consultation on tariffs with low or no standing charges1 goes to the same point.
What happens next
The committee published its report on 29 October 2025 and the Government has two months to respond1. The committee says its second report will cover matters affecting the retail energy market, including wholesale markets, policy costs, network and transmission charges and new technologies1. No date has been reported for Ofgem's enforcement action or for the outcome of its standing charge consultation.
Sources1 cited
- Tackling the energy cost crisis, publications.parliament.uk