Utility back-billing a ‘threat’ to retailers says ACS

Local shops should receive the same protection from energy supplier back-billing as domestic customers, according to the ACS.

Energy regulator Ofgem is considering banning suppliers from back-billing customers for periods beyond 12 months. However, the suggested ban would not apply to business customers such as retailers.

Despite a lengthy campaign by the ACS which has included collaboration with Ofgem and Government groups, back-billing for local retailers can still go as far back as six years. ACS CEO James Lowman says some energy suppliers have voluntarily reduced back billing periods, but there’s still work to be done.

He commented, “A number of energy companies still refuse to change their policies and this is simply unacceptable.”

Responding to the ACS’ demands, Ofgem told Retail Express that the current consultation does include business customers. A spokesperson from the regulator said the consultation was to “provide protections so that suppliers are not allowed to back-bill customers for energy used more than 12 months ago. This includes both domestic and potentially non-domestic consumers.”

Back-billing can occur when meter readings are either missing, inaccurate or above previous estimates. It can also occur due to energy supplier errors.

The voluntary standards agreed by energy industry groups Energy UK and ICOSS for microbusinesses are a three year limit for electricity and a four year limit for gas.

To be classed as a microbusiness a retailer must use no more than 100,000kWh of electricity or 293,000 kWh of gas, have fewer than 10 employees and have an annual turnover of less than €2 m.

While companies such as British Gas Business, EDF Energy, E.ON, npower, Scottish Power and SSE have all agreed to limit back billing for microbusiness gas and electricity customers to one year, others have not. Gazprom, Crown Gas & Power and Haven Power all have business back-billing terms of three years of more.

Prevention:

• Take a meter reading immediately when you move in or out of a premise
• Provide regular readings
• Contact your supplier if bills stop arriving

Cure:

• Disagree? Take it to the official Energy Ombudsman
• Negotiate a favourable payment schedule
• Get free advice from the Business Debtline