Response to Ofgem’s open letter to launch a project to protect consumers from back billing

Response to Ofgem's open letter back billing consultation [ 240 kb]

We welcome Ofgem’s decision to launch a project to examine the regulatory framework governing back billing. We have championed changes in this area to strengthen the protections for consumers. In this response we provide evidence that some suppliers are failing to apply the current voluntary back billing principle, which limits bills to 12 months usage where the supplier has failed to bill properly.

Our initial views are that:

• We support Ofgem’s minded-to position that a prescriptive rule in licence is required to provide a consistent minimum standard for consumers.

• That a six month back billing limit for smart meters should also be placed into licence, given supplier’s have failed to introduce voluntary protections.

• That Ofgem should consider the implications of applying this six month limit to all meters, rather than just smart meters, as part of its review.

• That domestic and micro-business consumers share many of the same characteristics, and should therefore receive the same protection in licence.