Back Billing And The Comedy Of Resolution With Octopus (Question Plus Mini Vent)

Joh_Flow

Hi everyone, I have been trying to find out if the Back Billing rules apply to Octopus Energy. I have been researching on Ofgem, CAB and other websites - but can't seem to find out if all energy companies mandatorily are signed to this, or if it is still voluntary for some. Does Octopus specifically have to follow the 12 month Back Billing rules ?

Bit of context : there have been repeated problems with consistency of bills over my last two properties (I rent). Both of these properties have been on smart meters, collect readings every half hour, and record monthly charges with Octopus once or twice a month. Bills have been provided monthly and I pay in full immediately. I have never had energy debt despite being on disability benefits. I have also had to question some oddities and received some money back previously. 

I am now get hacked off that it keeps happening. I honestly, can't trust my bills when they come through.

My account was in nicely in credit (because of said previous returns of money). I have now been back-billed from various periods outside of the back bill legislation, and as early as May 2023. All in one statement. Totally unexpected and non-discussed. The company have also wiped out all my credit (nearly £300) without seeking consent.

So, I raise a complaint (again). The customer service has been been utterly ridiculous. Agents that attach your complaint emails to you their strings, then ask you what you complaint is about, pieces of sent info. not being forwarded to in-house colleagues, company not following their own procedures, people asking you to screenshot info, because they can't be arsed reading stuff...(list goes on). And an allegation of a false (manual) reading being provided (asked for their evidence of that) and the properties are smart metered anyway (so irrelevant). Engaging so far has been stressful and a waste of my time and money. Can't wait for the 8 week deadlock so that I can raise with the Energy Ombudsman and receive some better support.

Anyway, mini rant over - does anyone have an answer to the top question.
Also are Octopus in trouble/trying to raise funds by back billing and clearing accounts ? Just wondered if this is widespread?

Thank you 

QrizB

Joh_Flow said:

Hi everyone, I have been trying to find out if the Back Billing rules apply to Octopus Energy. I have been researching on Ofgem, CAB and other websites - but can't seem to find out if all energy companies mandatorily are signed to this, or if it is still voluntary for some. Does Octopus specifically have to follow the 12 month Back Billing rules ?

To answer the question: all licensed suppliers are subject to Ofgem's back billing rules. Octopus are a licensed supplier, and so the back billing rules apply to them.

However, there's a lot of misunderstanding about what the back billing rules actually prohibit. They're designed to prevent bill shock, so you shouldn't be asked for new money to pay for any unbilled energy from more than 12 months before.

Joh_Flow said:

My account was in nicely in credit (because of said previous returns of money). I have now been back-billed from various periods outside of the back bill legislation, and as early as May 2023. All in one statement. Totally unexpected and non-discussed. The company have also wiped out all my credit (nearly £300) without seeking consent.

However, the rules permit suppliers to use existing bill credit for this purpose. Suppliers are also allowed to reclaim previous repayments. From what you've said, not only was your account in credit but you've also received repayments, which Octopus could legitimately ask for you to return.

So I think, from what you've described, Octopus haven't broken any rules.

Joh_Flow said:

Also are Octopus in trouble/trying to raise funds by back billing and clearing accounts ? Just wondered if this is widespread?

Octopus are the UK's biggest supplier of domestic electricity. No they're not in trouble. Yes there have been a few other recent threads about back billing, but no more than you'd expect for a supplier with 5 million customers.

WiserMiser

Joh_Flow said:

Bills have been provided monthly and I pay in full immediately.

Not a good idea: it's likely to cost you significantly more, probably around 7%.  You can pay Octopus by equal monthly direct debits (so-called Fixed DDs) or by monthly Variable DDs (on request) where you pay the whole bill in full each month.

MVDDs mean you don't have any problems or confusion caused by credit building up, although of course the bills will be higher in winter and lower in summer so you have to budget accordingly.

masonic

Their billing system automatically applies back billing rules, as I have found out to my benefit when they decided to recalculate 18 months worth of bills. If you check you'll probably find that the energy billed more than 12 months ago did not take you into a negative balance based on the credit on your account at that time. Otherwise the excess would have been written off by the system.