Ever heard someone say, “If I don’t pay my energy bills, they can’t bill me for more than 12 months”?
That’s one of the most common misconceptions about
Ofgem’s backbilling rules. These regulations aim to
protect consumers from unexpected, large bills when the delay is purely the
supplier’s fault—not to wipe out unpaid debts.
In this blog post, we’ll demystify Ofgem backbilling rules, clarify who they apply to, and explain the difference between genuine backbilling and simple non-payment.
Backbilling refers to when an energy supplier issues a bill for energy used in the past that wasn’t previously charged for (or was billed incorrectly). Reasons for backbilling can include:
The key point: Ofgem, the energy regulator in Great Britain, limits suppliers from charging customers for energy used more than 12 months ago if the delay was entirely the supplier’s fault. This applies to domestic consumers and microbusinesses.
Many small businesses assume they don’t qualify for these protections, but you might be surprised. According to Ofgem, you’re a microbusiness if you meet any of the following criteria:
If you do qualify, you can generally challenge backcharges for usage older than 12 months if it was the supplier’s mistake.
A common misunderstanding is thinking that an unpaid bill older than 12 months is automatically void. That’s not how it works. If you received a bill—whether it was accurate, estimated, or final—and you just didn’t pay, that isn’t backbilling, it’s debt.
Backbilling = Being charged (or corrected) late for energy you weren’t properly billed for in the first place.
Debt = You were billed, but chose not (or were unable) to pay
Below are some typical situations customers face. Click on each scenario to learn how Ofgem’s backbilling rules may—or may not—apply.
If you’re a microbusiness and the lack of billing is entirely the supplier’s fault (e.g., they never set up your account properly), Ofgem’s rules typically prevent them from charging you for any usage older than 12 months.
If you’re not a microbusiness:
No. If you were actually billed (whether estimates or actual reads) for the energy, that’s considered a debt, not backbilling. The 12-month rule does not wipe out unpaid charges.
This often does fall under the backbilling rules if you’re a microbusiness or domestic customer. Because the supplier had the correct information but failed to apply it, that’s typically considered supplier error.
It depends on why the bills were estimated.
If you’re not a microbusiness, the supplier might pursue the entire period, but they should handle the catch-up in a fair and manageable way for you.
Not necessarily. Although the official 12-month backbilling cap applies strictly to microbusinesses (and domestic customers), all suppliers must follow Ofgem’s Standards of Conduct and be fair and transparent.
Ofgem’s backbilling rules are designed to stop surprise, sky-high bills caused by supplier errors. They protect many domestic and microbusiness customers, but not all SMEs automatically qualify. Even if you’re not covered by the 12-month rule, you still have rights—like disputing unreasonable billing practices or arranging affordable payment plans.
If you’re unsure about your microbusiness status or think you’ve been incorrectly billed, take action now:
Need more advice? Feel free to reach out or drop a comment below—understanding backbilling can save you (or your clients) from confusion and unexpected costs.
Disclaimer: The information provided in this blog is for guidance only and does not constitute legal advice. For specific concerns about your energy bill, consult Ofgem’s official website or seek professional counsel.
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