For a microbusiness, energy suppliers will normally be prevented from recovering charges for energy used more than 12 months earlier if the customer had not previously received an accurate bill or statement showing what was owed.
Ofgem’s back-billing rules apply to domestic customers and microbusinesses. However, the protection does not apply in every situation. A supplier may still be able to recover older charges where the customer has acted unreasonably, for example by preventing access to a meter, ignoring requests for payment or interfering with the energy supply.
The same 12-month protection should not automatically be assumed for a larger business. The position may depend on the contract, the circumstances surrounding the billing error and the normal legal rules governing recovery of debt.
If you receive an unexpected historic bill, check the billing period, previous invoices, meter readings and any earlier statements of account. A microbusiness that believes the back-billing rules have not been followed should challenge the bill with the supplier before paying the disputed amount.
