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

Chrysalis

MWT said:

Joh_Flow said:

Thank you can you direct me to where you have received this info from?

I wish there was a single source for this level of detail, but it mostly comes from the way the Ombudsman has interpreted the principles in the Ofgem rule.

The basis is that the rule is there to avoid bill-shock, the Ombudsman considers that DD payments made to a supplier are there to pay for use, so once paid can be used for any energy consumed, even if not billed at the time or within 12 months.

Similarly the Ombudsman has ruled that refunds made from those payments can be reclaimed to use to cover previously unbilled energy. - personally I'd always challenge that one as occasionally you get an ombudsman that takes a contrary view. 

Interesting the phrase "bill shock" is used.  Because a payment isnt a bill, the statement which shows your usage, and your charges is the bill.
So even if you have credit, you can still have bill shock.
To me this just digs that trench further where people think a DD is a bill.  Ofgem jumping on it as if to say, if the bill is paid via credit then its not a bill.

StoneandSparrow

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?

Similar experience:

We received a final bill from Octopus Energy dated 18 Feb 2025 for £1,731.96. Electricity had been billed on estimates from 1 Jul 2023 until data collector reads on 9 Dec and 24 Dec 2024. On 1 Jan 2025 Octopus billed Oct to Dec 2024 as 997.7 kWh on estimates. On 10 Feb 2025 they re-billed that same period to 5,997.7 kWh, effectively adding a 5,000 kWh catch up. Our meter is outside by the front door, unlocked and easy to read.

We argued that Ofgem’s 12 month back-billing protection should write off the share of that catch up that relates to usage before 18 Feb 2024. We asked for apportionment across 1 Jul 2023 to 1 Jan 2025, removal of the pre cutoff portion.

The Ombudsman has rejected this, reasoning that because we paid estimates the charges were already “sought.”

We have filed a Factual Error challenge. Our position is that the extra 5,000 kWh was first billed on 18 Feb 2025, so it was not previously sought. Paying regular estimated bills is not the same as being billed for the later shortfall. We are asking the Ombudsman to require apportionment across 1 Jul 2023 to 1 Jan 2025, write off all usage before 18 Feb 2024. The meter is outside and accessible, so obstruction does not apply. If anyone has experience where estimated payments were wrongly treated as “sought” charges, or examples of apportionment being directed, I would value your insight.

molerat

StoneandSparrow said:

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?

Similar experience:

We received a final bill from Octopus Energy dated 18 Feb 2025 for £1,731.96. Electricity had been billed on estimates from 1 Jul 2023 until data collector reads on 9 Dec and 24 Dec 2024. On 1 Jan 2025 Octopus billed Oct to Dec 2024 as 997.7 kWh on estimates. On 10 Feb 2025 they re-billed that same period to 5,997.7 kWh, effectively adding a 5,000 kWh catch up. Our meter is outside by the front door, unlocked and easy to read.

We argued that Ofgem’s 12 month back-billing protection should write off the share of that catch up that relates to usage before 18 Feb 2024. We asked for apportionment across 1 Jul 2023 to 1 Jan 2025, removal of the pre cutoff portion.

The Ombudsman has rejected this, reasoning that because we paid estimates the charges were already “sought.”

We have filed a Factual Error challenge. Our position is that the extra 5,000 kWh was first billed on 18 Feb 2025, so it was not previously sought. Paying regular estimated bills is not the same as being billed for the later shortfall. We are asking the Ombudsman to require apportionment across 1 Jul 2023 to 1 Jan 2025, write off all usage before 18 Feb 2024. The meter is outside and accessible, so obstruction does not apply. If anyone has experience where estimated payments were wrongly treated as “sought” charges, or examples of apportionment being directed, I would value your insight.

What did you do to challenge / correct the estimates ?

StoneandSparrow

molerat said:

What did you do to challenge / correct the estimates ?

Initially raised a complaint with Octopus Energy, then referred to the Energy Ombudsman after eight weeks.

When the Ombudsman said our estimated payments meant the charges were “sought,” there was the option to challenge the conclusion, we took this option and filed a Factual Error challenge explaining the extra 5,000 kWh was first billed on 18 Feb 2025, so it was not previously “sought.”

We asked for calendar apportionment of the catch up and a write off of all usage before 18 Feb 2024, before applying any grants or goodwill.

Currently awaiting their response...

molerat

I meant at the time the estimated bills were issued.

QrizB

StoneandSparrow said:

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?

Similar experience:

OK, can we have a bit more detail please?

StoneandSparrow said:

We received a final bill from Octopus Energy dated 18 Feb 2025 for £1,731.96.

This was on leaving Octopus? When had you joined?

Were you paying by fixed DD, by variable DD, or on some other payment method (& if so, which)?

StoneandSparrow said:

Electricity had been billed on estimates from 1 Jul 2023 until data collector reads on 9 Dec and 24 Dec 2024. On 1 Jan 2025 Octopus billed Oct to Dec 2024 as 997.7 kWh on estimates. On 10 Feb 2025 they re-billed that same period to 5,997.7 kWh, effectively adding a 5,000 kWh catch up. Our meter is outside by the front door, unlocked and easy to read.

Do you have a smart meter or a conventional one? If conventional, were you submitting regular readings to Octopus? If smart, were you taking occasional readings for your own records?

Had Octopus been issuing monthly bills during this period?

- If so, were you checking them? What meter readings were on them?

- If not, had you contacted them to find out why not?

StoneandSparrow said:

We argued that Ofgem’s 12 month back-billing protection should write off the share of that catch up that relates to usage before 18 Feb 2024. We asked for apportionment across 1 Jul 2023 to 1 Jan 2025, removal of the pre cutoff portion.
The Ombudsman has rejected this, reasoning that because we paid estimates the charges were already “sought.”

I'm inclined to agree with the Ombudsman here. Back-billing only applies where you haven't already paid money onto your account and the supplier is asking for "new money" to pay for energy used more than a year before. From what you've said, the 5000kWh correction was entirely within the previous 12 months and you'd paid for energy used befoe then.

StoneandSparrow said:

Our position is that the extra 5,000 kWh was first billed on 18 Feb 2025, so it was not previously sought. 

But - it applied to the last quarter of 2024; ths was less than 12 months previous to the bill date and isn't covered by back billing.

StoneandSparrow

Thanks for the questions. 

• Final bill: £1,731.96 dated 18 Feb 2025, issued when we left Octopus.
• With Octopus for years, including 2018 to 2025.
• Payment method: monthly fixed direct debit, monthly statements.
• Meter: conventional credit meter, not smart.
• Reads: no billed actual electricity reads between 1 Jul 2023 and Dec 2024. Data collector reads landed 9 Dec and 24 Dec 2024. We supplied a final read with photos in Feb 2025. Meter is outside by the front door, unlocked and accessible.
• Monthly, electricity estimated until the December reads.

We're arguing that regular payments against low estimates are not the same as being billed for a later quantified shortfall, so the 12 month protection still applies to the newly billed portion

But it sounds as though you don't agree with this, is that right?

QrizB said:

I'm inclined to agree with the Ombudsman here. Back-billing only applies where you haven't already paid money onto your account and the supplier is asking for "new money" to pay for energy used more than a year before. From what you've said, the 5000kWh correction was entirely within the previous 12 months and you'd paid for energy used befoe then.

QrizB

StoneandSparrow said:

• Meter: conventional credit meter, not smart.

• Reads: no billed actual electricity reads between 1 Jul 2023 and Dec 2024. Data collector reads landed 9 Dec and 24 Dec 2024. We supplied a final read with photos in Feb 2025. Meter is outside by the front door, unlocked and accessible.

Octopus will produce a bill monthly, automatically. This will use estimates if you have a conventional meter and haven't provided readings.

Ofgem only require Octopus to obtain a reading every 24 months, which they appear to have done.

Interim readings are the responsibility of the householder. From what you've said, the meter was readily accessible and you could have provided readings at any time if you'd wanted to correct the estimates.

StoneandSparrow said:

We're arguing that regular payments against low estimates are not the same as being billed for a later quantified shortfall, so the 12 month protection still applies to the newly billed portion.

But it sounds as though you don't agree with this, is that right?

Correct, I don't agree with your interpretation of the rules. Based on the cases that have gone to the Ombudsman, and the info you've shared here, your case doesn't seem to meet the requirements for back billing protection.