A “knife edge” warning has been issued to British Gas, OVO, EDF, EON and Octopus customers. Citizens Advice warns 60,000 households need help with their energy bills as the number of people seeking aid rises by a staggering 20 per cent.
Citizens Advice is calling for an overhaul of the billing regulations. It wants British Gas, OVO, EDF, Eon and Octopus customers to benefit from a cap on back-billing to six months for those with smart meters, and a reduction from the current 12-month period.
Alex Belsham-Harris, head of energy policy at Citizens Advice, said:: “Day in, day out our advisers support people whose budgets are on a knife-edge. Incorrect charges and large, surprise catch-up bills threaten to push these families into financial crisis.
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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 makeup for companies’ billing errors. The regulator, Ofgem, must act to protect consumers by limiting back-billing to curb the amount customers can be charged. It should also raise service standards, so people struggling with billing issues get the help they need.”
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.” A Government spokesperson said: “Every family in the country has paid the price of Britain’s dependence on global fossil fuel markets. That is why we are sprinting to clean, homegrown energy, so the UK can take back control of its energy with cleaner, affordable power.”
“We will repair Great Britain’s retail energy market and deliver real change to ensure people have the best possible support to choose more affordable, smarter, clean energy that is right for them.”