Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 22
22
Deferred
Limit smart meter back-billing period to six months and publish supplier penalty data for breaches.
Conclusion
Ofgem should limit the back billing period to six months for customers with a smart meter. It should also publish annual data on the penalties it gives energy suppliers for breaching its back billing rules. (Recommendation, Paragraph 79)
Government Response Summary
The government states this is a matter for Ofgem, which is currently undertaking a broad assessment of billing rules, including back billing, with consultations due by late January 2026. The government does not commit to the specific six-month limit or data publication but supports better redress mechanisms.
Government Response
Deferred
HM Government
Deferred
This is a matter for Ofgem as the independent regulator, but the Government agrees that customers should receive accurate bills, and where that is not the case the issue should be rectified as quickly as possible. Ofgem is currently undertaking a broad assessment of billing rules by considering the key causes for customer complaints and the ways in which suppliers are innovating to deliver the best outcomes for customers. This assessment includes back billing, within the wider context of bill accuracy and bill understanding. Ofgem are approaching their assessment of billing issues and any review of rules through a ‘Consumer Confidence’ lens, considering whether the regulatory framework is fit to deliver good billing outcomes for consumers into the future. The billing policy assessment sits alongside Ofgem’s Consumer Outcomes work,3 which is currently out for consultation with the industry and stakeholders with responses due by late January 2026. The Department will continue to work with Ofgem as it determines whether changes to backbilling rules for consumers with smart meters will improve consumer experience and strengthen confidence in smart metering. In cases when suppliers are breaking the rules, the Government also wants to ensure that consumers have access to fairer and easier redress. This is why the Government is consulting on the role and powers of the Energy Ombudsman, including proposals to make it faster and easier to access the Ombudsman’s services, and taking steps to ensure that where the Ombudsman rules in a consumer’s favour, that decision is implemented on time and in full. Further, Ofgem are currently reviewing their Guaranteed Standards of Performance framework, through which suppliers are required to make an automatic compensation payment to their customers when the supplier has breached certain rules. Through their review, Ofgem are considering whether automatic compensation payments should be increased and whether they should be extended to a broader range of issues, including billing.