The number of people in England and Wales seeking help with energy bills surged by 20% last year, highlighting the mounting financial strain on households. Citizens Advice reported assisting 60,000 households grappling with the rising cost of gas and electricity. Billing issues have become increasingly prevalent, with figures doubling since 2020.
Billing problems were the most common issue raised with Citizens Advice, underscoring the challenges consumers face. A significant portion of these issues involved catchup bills, which averaged £2,500. The current price cap has risen by nearly £600 compared to early 2022, exacerbating financial burdens on families. On New Year's Day, a 1.2% increase in the price cap pushed the average annual energy bill to £1,738 for millions of households.
Forecasts indicate a further 3% increase in energy prices this April, adding to consumer concerns. Ofgem, the energy regulator for Great Britain, sets quarterly limits on the amount suppliers can charge for gas and electricity. They are currently reviewing billing accuracy and supplier practices.
"Customers should not be spending hours rectifying incorrect bills or worrying about demands for money they don’t owe." – A spokesperson for Ofgem
Citizens Advice has urged Ofgem to limit back-billing for customers with smart meters to six months, down from the current 12. The charity also calls for suppliers to promptly resolve billing issues and handle complaints more effectively. Unfortunately, suppliers have sometimes failed in this regard, resulting in millions of pounds in redress and compensation secured by Citizens Advice.
"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." – A spokesperson for Ofgem
The consequences of billing complications have become more severe as energy prices continue to rise. Recent cold weather warnings across the UK have heightened demand for heating, placing additional pressure on the government following its decision to cut winter fuel payments for all but the poorest pensioners.
"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," – Alex Belsham-Harris, the head of energy policy at Citizens Advice