The number of people seeking help with energy bills has risen 20 per cent in a year. The figure jumped by 20 per cent last year, according to Citizens Advice, which assisted 60,000 households struggling with the soaring cost of gas and electricity.
Billing was the most common problem raised with Citizens Advice staff, the charity has added as the new price cap begins. A quarter of billing issues last year involved catchup bills, which were £2,500 on average, the charity found.
Citizens Advice said it was “crucial” that energy companies regularly provided consumers with accurate and easy to understand bills. The charity has urged Ofgem to limit the back-billing of customers with smart meters to six months, rather than the current 12, to avoid large shock payments.
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“Consumers simply can’t afford to pick up the tab when something goes wrong, and the onus shouldn’t be on them to make up for companies’ billing errors,” said Alex Belsham-Harris, the head of energy policy at Citizens Advice. “Day in, day out our advisers support people whose budgets are on a knife-edge. Incorrect charges and large, surprise catchup bills threaten to push these families into financial crisis,” he added.
A spokesperson for Ofgem said: “Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe. It is a supplier’s responsibility to fix billing issues quickly and handle complaints effectively, and we have secured millions of pounds in redress and compensation where they have failed to do this.
“Last year we announced our intention to review the rules around billing accuracy and supplier billing practices, including back-billing rules, as part of our consumer confidence programme. We have also set out proposals to reset the debt, and reform the system so customers receive a higher standard of support from their supplier when they are struggling.”