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Fuel Rights Handbook 21st edition

Billing delays

You may find that the supplier has billed you for a longer period of time than normal and, when you finally receive the bill, it covers that whole period. A delayed bill can cause a high bill. Suppliers are not obliged to bill you at any particular interval, although they will normally send bills every three months or six months. Notwithstanding; they must provide a bill at least twice a year, or quarterly if you request a quarterly bill.1Condition 21B.5 SLC If you have a prepayment meter, statements are usually sent to you at least once a year. If you have a smart meter, calibrated to remotely transmit meter readings, your supplier can provide accurate monthly bills based on your consumption.2Condition 21B.5A SLC If regular bills have not been sent, or are late, point out to the supplier that it has directly contributed towards the high level of debt by making it difficult for you to monitor or modify consumption. It should be possible to negotiate time to pay. Suppliers must take into account your ability to pay.

Bills sent after a long time should be examined with care: the charges and tariffs may have changed since the previous bill. The majority of consumers still do not switch providers or indeed tariffs, resulting in them being overcharged, the supplier earning excess profit with little incentive to operate efficiently. Ofgem’s most recent report has found that more than half of energy consumers tended to be on a standard variable or default tariff353 per cent of consumers on a default tariff, not including prepayment meter tariffs. Ofgem, State of the Energy Market 2019, at ofgem.gov.uk/sites/default/files/docs/2019/11/20191030_state_of_energy_market_revised.pdf and in the absence of the statutory default tariff price cap,4Domestic Gas and Electricity (Tariff Cap) Act 2018, effective from 1 January 2019 consumers would be overcharged for the energy they use. If fuel or energy prices have increased or you have changed your tariff, check to ensure that the supplier has charged accurately and at the correct unit rate and standing charge. If it has not, the bill should be amended and reduced accordingly. Also check that the supplier has complied with the requirement at SLC 31I to give you reasonable notice, in an appropriate form and time, of any changes to the cost of your supply.

There have been cases of bills generated to customers after months or even years. Unless fraud is involved (see Chapter 9), charges cannot be recovered:

•in England and Wales, if you last made a payment or acknowledged the debt more than six years ago;5Limitation Act 1980or
•in Scotland, if the supplier has not raised legal proceedings against you for the charges and you have not acknowledged the charges for five years.6s6 Prescription and Limitation (Scotland) Act 1973

Otherwise, you must pay for the gas or electricity that was supplied to you (see Chapter 5). With a bill that is very late, much of the bill may be estimated (see below). The longer the delay, the better the chances of having part or even the entire bill written off, deemed unenforceable or being given time to pay. Be prepared to negotiate and put forward proposals in writing, setting out your circumstances as necessary. Citizens Advice consumer service can advise and the Energy Ombudsman could apply pressure on the supplier to settle on a reasonable solution as appropriate (see Chapter 14).

 

1     Condition 21B.5 SLC »

2     Condition 21B.5A SLC »

3     53 per cent of consumers on a default tariff, not including prepayment meter tariffs. Ofgem, State of the Energy Market 2019, at ofgem.gov.uk/sites/default/files/docs/2019/11/20191030_state_of_energy_market_revised.pdf »

4     Domestic Gas and Electricity (Tariff Cap) Act 2018, effective from 1 January 2019 »

5     Limitation Act 1980 »

6     s6 Prescription and Limitation (Scotland) Act 1973 »