The number of people in England and Wales who sought help with energy bills jumped by 20% last year, according to Citizens Advice, which assisted 60,000 households struggling with the soaring cost of gas and electricity.
That number was double the figure for 2020, the national consumer advice charity said, with problems with billing being the single most common type of issue raised with its service providers.
Such problems are not new but their consequences have become more serious with energy prices shooting up in recent years. A quarter of billing issues last year involved catchup bills, which were £2,500 on average.
The energy regulator for Great Britain, Ofgem, sets a limit every quarter on the amount suppliers can charge for a unit of gas and electricity. On New Year’s Day, that price cap rose by 1.2%, increasing the average energy bill for millions of households to £1,738 a year. A further 3% increase is forecast for April.
The current cap is almost £600 a year more than the figure at the start of 2022, before Russia’s invasion of Ukraine in early 2022 sent energy prices soaring.
It comes as cold weather warnings have been issued across the UK, with the lowest January temperatures being recorded in 15 years, adding to demand for heating and pressure on the government over its controversial decision to axe winter fuel payments for all but the poorest pensioners.
Given the pressure on bill payers, Citizens Advice said it was “crucial” that energy companies regularly provided consumers with accurate and easy to understand bills. The charity has urged Ofgem to limit the back-billing of customers with smart meters to six months, rather than the current 12, to avoid large shock payments.
“Consumers simply can’t afford to pick up the tab when something goes wrong, and the onus shouldn’t be on them to make up for companies’ billing errors,” said Alex Belsham-Harris, the head of energy policy at Citizens Advice.
“Day in, day out our advisers support people whose budgets are on a knife-edge. Incorrect charges and large, surprise catchup bills threaten to push these families into financial crisis,” he added.
A spokesperson for Ofgem said: “Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe.
“It is a supplier’s responsibility to fix billing issues quickly and handle complaints effectively, and we have secured millions of pounds in redress and compensation where they have failed to do this.
“Last year we announced our intention to review the rules around billing accuracy and supplier billing practices, including back-billing rules, as part of our consumer confidence programme.
“We have also set out proposals to reset the debt, and reform the system so customers receive a higher standard of support from their supplier when they are struggling.”
