Backbilling by Northern Irish Energy Suppliers Limited to 13 Months

From today gas and electricity suppliers in Northern Ireland will need to calculate bills based on accurate meter readings rather than rely on estimated usage, after a rule change that will limit backbilling.

Backbilling is often used when suppliers have relied on estimated usage when issuing bills to customers and then receive an accurate meter reading later. 

Previously energy companies could pursue households and micro businesses for payments for usage from up to six years before. Now, under new rules from Northern Ireland’s Utility Regulator, they’ll be limited to pursuing settlements from just the previous 13 months when the outstanding amount is due to supplier error in calculating usage.

Exceptions to the 13-month limit include when the supplier has been unable to issue accurate bills due to unlawful activity, such as meter tampering, and when a supplier has been unable to get a meter reading “despite using all reasonable efforts.”

Jenny Pyper, chief executive of the Utility Regulator said: “Our decision to limit electricity and gas backbilling for domestic and microbusiness customers to 13 months aims to ensure that consumers are treated fairly, providing added protection.”

The Consumer Council, consumer advocates in Northern Ireland, welcomed the new regulations, which they said would spare consumers shock bills.

Michael Legg, head of energy policy at the Consumer Council, said: “Backbilling can result in a surprise bill for consumers, creating energy debt and financial hardship. It is important that unnecessary debt is avoided and better managed. The new rules implemented by the Utility Regulator is good news for consumers as it will help reduce backbilling.

“We would also encourage consumers to play their part by submitting their own meter readings, allowing access for meter readings or filling in the self-complete cards left by NIE Networks and gas suppliers. If you need help with how to read your meter, contact your supplier. You should also regularly check your energy bills. If something does not look right, contact your supplier so they can look into the matter.”

For the rest of the UK, Ofgem prohibited energy suppliers from backbilling customers for energy used more than 12 months previously in March 2018. At the time the regulator, which governs the energy market in England, Scotland and Wales, said the typical catch-up bill is for £1,160, which can cause households financial hardship and stress and leave them in debt.

Some British suppliers had previously signed up to a voluntary code agreeing not to backbill customers beyond 12 months.