Energy and Utility Disputes: Are you an individual or business being overcharged by your energy or utility provider?

Are you an individual or business being overcharged by your energy or utility provider? If so, you may wish to seek advice to better understand your rights and options. 

The cost of gas and electricity continues to rise and, as a result, there has been an uptick in claims being issued by utility suppliers against both individuals and business consumers, particularly regarding energy bills. The provision of utilities is already a heavily regulated environment which aims to prioritise consumer protection; however, disputes still commonly arise over billing accuracy, tariff application, back-billing and service termination. 

This article aims to highlight some of the common issues faced by both individuals and business consumers and offers some guidance on how best to navigate an energy and utility dispute whether it be through formal Court proceedings or determination by way of the Ombudsman.  

Common Types of Energy and Utility Bill Disputes 

Incorrect or Unexpectedly High Bills 

Many disputes arise when a bill suddenly jumps without explanation; understanding the complaints procedure can help resolve these issues. Common reasons may include: 

• faulty meters (including faulty time switches or meters running too fast) 

• catch-up billing 

• changes in tariffs 

• system errors 

Inappropriate Back-Billing 

Back-billing occurs when the supplier seeks to charge for historic usage which was not previously billed. This commonly arises in circumstances where meter readings are not provided to the provider and, as a result, bills are raised on the basis of inaccurate estimated readings / usage.  

Problems arise when the consumer receives an unexpectedly large bill which covers a long period. However, consumer protection regulations apply to protect customers from being inappropriately charged for energy used more than 12 months ago, so long as the supplier failed to bill correctly. 

Deemed Rates / Out-of-Contract Rates 

Consumers are often enticed into entering fixed-term contracts offering a reduced / discounted rate for an initial fixed period, but upon the expiry of the fixed term, consumers are then automatically (and often unknowingly) placed on a higher and more costly “Deemed” or “Out of Contract” rate, leaving them in need of support to navigate these changes. 

Insufficient Meter Installations 

It is important to ensure that there are sufficient meters installed at the premises, and to coordinate with your network operator to confirm this. Problems of joint and several liability often arise in circumstances where an individual meter services multiple units contained within a single building, where you may find yourself liable for other people’s / businesses’ usage. 

Steps to Take in the Event of a Dispute 

If you receive an unexpectedly high bill, or your energy / utility supplier has threatened to initiate legal proceedings against you to recover arrears, you should immediately consider speaking with a representative to discuss the situation and: 

a) Contact a specialist solicitor like Ronald Fletcher Baker 

The regulations governing the supply of energy and utilities are complicated and complex, and disputes can be taxing and cause a strain on any individual or business. It is therefore imperative that you seek the assistance of a solicitor to challenge the amounts claimed by your supplier. 

b) Investigate and collect evidence

Gather as much documentary evidence as possible. This should include: 

• a copy of your contract with the supplier (often only sent electronically via email) 

• any terms and conditions (often published online) 

• historic bills raised (so that you can compare the rates and usage) 

• any meter readings 

• any other communications exchanged with your supplier 

c) Dispute the amounts claimed 

If you believe that you have been inappropriately overcharged, or if back-billing rules have not been adhered to, you can dispute and challenge the amounts claimed. Your initial step should be to raise a formal complaint with your energy and utilities supplier. If the complaint cannot be resolved to your satisfaction, you may refer your complaint to the Energy Ombudsman. 

An unexpectedly high bill…

Utility bills are essential household expenses; however, an unexpectedly high bill can be crippling for any individual or business. If you require any assistance in relation to a dispute with your energy or utility supplier, or to challenge an unexpectedly high utility bill, please contact Partner Jonathan Chan at J.Chan@rfblegal.co.uk / 0207343426 for further advice and assistance.