In this fascinating discussion, Kate Pender, Chief Executive of Fair For All Finance, sheds light on the troubling practice of back billing in the energy sector. She delves into the urgent need for regulatory oversight and transparency among energy suppliers, following a recent investigation. The conversation also highlights a new low-interest loan scheme from credit unions aimed at helping those drowning in high-interest debt, emphasizing the critical role of consolidation for financial recovery.
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Back Billing Issues
Jennifer and Melissa received back bills for thousands of pounds, breaking energy billing rules.
They faced stressful and frustrating experiences trying to resolve the issues with their suppliers.
insights INSIGHT
Reasoning Behind Back Billing Rules
The 12-month back billing limit protects consumers from outdated and potentially inaccurate charges.
Many back bills are inaccurate, contributing to the high volume of energy bill complaints received by Citizens Advice.
volunteer_activism ADVICE
Addressing Back Billing Errors
Energy suppliers should prioritize fixing back billing errors and improve communication with customers.
Dhara Vyas acknowledges potential systemic issues with back billing that require further investigation.
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The energy regulator Ofgem has been given less than two weeks to get answers for Parliament on the banned practice of back billing, which is when people are sent new bills for energy used longer than 12 months ago. In a letter written to the Chief Executive of Ofgem the chair of the Energy Security and Net Zero committee highlights Money Box's recent investigation into back billing, saying he considers there to be evidence of serious wrong doing on the part of energy suppliers and the need for intervention on the part of the regulator. Ofgem told Money Box it's reviewing supplier billing practices and "looking closely at supplier compliance with back billing rules to make sure customers get the service they are entitled to." For the first time since our investigation began Paul Lewis interviews Dhara Vyas, the chief executive of Energy UK, which represents energy suppliers.
State pensions paid to tens of millions of people will go up in April by 4.1%, but depending on how your pension is paid - weekly or monthly - some people may not get the extra money until May. How to make sure you get it as soon as possible.
And people who get into debt often find that it gets worse because of the high interest rates they are paying. Often they are only paying interest not reducing the amount owed at all. A new scheme by credit unions is trying to solve that by giving an affordable loan to people in debt at a low rates of interest so they can pay off their expensive debt and afford the repayments on their new debt. How will it work?
Presenter: Paul Lewis
Reporters: Dan Whitworth and Peter Ruddick
Researchers: Eimear Devlin and Jo Krasner.
Editor: Jess Quayle
(First broadcast 12pm Saturday 15th February 2025)
Money Box