Protecting Your Credit Score While Challenging Invalid Energy Bills

Should you really be repaying an energy bill to a supplier that is over a year old?

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Hold on! Don't rush to pay it just yet. According to Ofgem regulations, this practice, known as back billing, is generally not allowed. For want of another word – the practice is unlawful. Energy companies can pursue debts for up to 6 years, but they're restricted from charging you for energy used over 12 months ago if they failed to initially bill you correctly.

Surprisingly often, energy suppliers attempt to recoup losses from their own billing mistakes by sending out these questionable invoices. In some alarming cases, I've seen clients face court action, resulting in County Court Judgments (CCJs) or negative marks on their personal or business credit reports – all due to supplier errors in back billing.

What's Behind These Delayed Charges?

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Several factors can lead to back billing issues:

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-  Reliance on estimated readings instead of actual meter data-

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• As a business, your practice may have relied on estimated meter readings instead of providing actual meter readings to their energy supplier regularly throughout the year. This can lead to you underpaying or even overpaying your energy supplier. Poor internal processes by the energy supplier mean that these underpayments can be left unnoticed for months and even years

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-  Faulty or damaged meters

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• means that you’re being wrongly billed and end up having to pay more at a later date

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-  Complex business energy usage patterns

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• For example, as a business owner with complex energy bills or with seasonal fluctuations in energy consumption you cannot be charged for gas or electricity used more than 12 months ago if you haven’t been billed correctly

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-  Recent changes in property or energy supplier

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• You may be a professional recently moved to a new location and you have recently changed your energy supplier. You have the right to dispute a back bill if you believe that it is incorrect.

The Impact on Your Financial Health

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Receiving an unexpected, sizeable back bill can be shocking and financially destabilizing. More concerning is the potential damage to your credit score if the supplier takes legal action or reports the disputed amount as unpaid debt.

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One of our clients faced a £16,000 back bill based on three years of estimated usage. Despite his attempts to dispute the charges, the supplier obtained a CCJ and reported negatively to credit agencies. They even initiated High Court enforcement proceedings.

When we took over the case, we successfully obtained a stay of enforcement proceedings, applied and obtained an order from the court to set aside the county court judgment CCJ, and had the back bills cancelled. In addition, our client received a formal apology, compensation, and costs from the energy supplier.

Protecting Yourself from Illegal Back Bills

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1. Don't panic and don’t immediately agree to pay

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2. Verify the bill's accuracy to see if it violates the 12-month rule

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3. document all communication with the energy supplier

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4. If the rules are broken, follow the supplier's complaint procedure

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5. Escalate to the Energy Ombudsman if necessary

Of course, if you are unhappy with the way your current supplier has handled the back billing process, you can always contact us here at Remove CCJUK to help with any part of the process that you may be struggling with.

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As an expert credit repair service we can help with expert navigation of complex energy regulations and high stake cases, direct negotiation with suppliers, cancellation of invalid back bills, removal of unfair CCJs removal and negative credit report marks and halting of a legal action.

Remember, since 2018, Ofgem rules have been clear: suppliers cannot charge for their own billing errors beyond 12 months. While a surprise back bill can be alarming, you have rights and options to protect both your finances and your credit score.

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Get in touch and share your experiences. Alternatively, share this information with some-one you know who might be interested or need some help navigating this  area.

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