EON back billing query

Gower_rain

My daughter is disabled. She moved into her current flat in October 2022, and EON supplied her electricity. She recently changed her energy supplier from EON to Octopus, and was surprised that EON were continuing to take monthly direct debit payments two months after the switchover. When I checked her EON account, I noticed that in September 2024, she had been billed for the period from September 2022 (i.e. before she moved) until October 2023, which put her account over £462 in debit. This was the first bill she had received for this period even though she had noticed that her smart meter wasn't working properly and informed EON in September 2023. EON finally fixed the problem in December 2023. 

EON are saying that because this was the first bill, it is not covered by the back billing rule. Is this true?

MWT

The 'first bill' rule only covers them if your daughter did not set up her account and provide payment details promptly after she moved in, was that the case?

The other point is that if she had set up her account and DD promptly then they are allowed to use those DD payments to cover the previously un-billed energy, but you mention that the bill put her in debt...

So the question is how much of that debt was accrued during the period over 12 months before the bill was issued?

Reed_Richards

If I moved into a new property I would immediately read the meter and also take a photograph as proof.  I would then contact the incumbent supplier and inform them of my reading and the date on which it was taken.  I would do this because I know the drill and I know the potential for things to go wrong.  How much, if any, of this did your daughter do?  In what way was was the smart meter "not working properly"?  Is your daughter being billed for electricity she did not use?  Or is it a late bill but based on accurate readings?  Or don't you know?  

Gower_rain

Thank you. The bill was accurate. The smart meter was fitted when she moved in and her account was set up on the basis that she paid when she received bills, but she didn't receive any until over 12 months after the period in question. She did set up a direct debit early in 2024, once the issue with the smart meter had been resolved. EON also accidentally credited her account with £272 in December 2023, which meant that her account was in credit for a very long time. EON is also claiming this money back, but I'm guessing that they are entitled to do that.

Reed_Richards

The purpose of the back-billing regulations is to prevent "bill shock" when you receive an unexpected bill pertaining to charges incurred over 12 months previously (and your account does not have enough funds to cover the bill).  If someone is not receiving any bills at all then it cannot come as a complete surprise when they eventually get one.  So perhaps back billing regulations do not apply in this case?  But I'm not an expert on such matters.    

Scot_39

Arguably they should have noticed the smart meter faulty, but also arguably your daughter should perhaps have noticed an absence of bills - not sure what period EOn Next bill Standard Credit these days  - 90 days ? and chased up earlier too - and also have checked supplier receiving and if not submitted readings.

Did she sign up to EOn Next portal on line account / or paperless billing by email / account messaging.

EOn Next T&Cs when last read - stipulate monthly readings. 

(If her disability did not prevent her from accessing the meter readings - that might also have applied. And if disability does - she should be registered as such on EOns Priority Service Register and they should then perhaps still send meter readers at least annually arguably until smart operational (reporting readings over WAN) for them to comply with license - 21B.4).  

But where does a faulty non communicating smart meter fall ?  Id perhaps argue regardless it should be up to them to spot and fix quickly - well within 12 m where possible - if they want to hide behind the exemptions for it.

The back billing also sits together with a requirement on the provider to provide an accurate bill - from actual measurements (caveat subject to "reasonable effort") on at least an annual basis. 21B.4.

Again arguably in absence of measurements they could have requested them or sent own readers.

But also in license - depending on meter a minimum set frequency of statements on accounts - non smart 6 monthly (or 3 months by request) statements on account - or smart monthly statements - under 21B.5 / 5A.

Again - where does a non WAN connected smart meter fall ?  

(I would have guessed estimated in absence of proper readings but same frequency - but only a guess)

Sounds like they failed on both counts - and with no estimated bills - no standard credit type payment - or payments on account made (e.g by card via online account portal).

@MWT - how does the first bill rule apply for non DD customers - as OP's daughter sounds like went on standard credit for over a year (Oct 22 - early 24) ?

Are those rules in public domain  - like another part the license conditions (its 100s of pages - havent read most of them) ?

The electricity supply license for instance

https://www.ofgem.gov.uk/sites/default/files/2023-03/Electricity Supply Standard Consolidated Licence Conditions - Current.pdf

The backbilling in 21BA doesn't explicitly mention first bills - but arguably under 21B5 - EOn were over a year late late in providing anyway.

Id talk to a professional adviser used to dealing with billing problems - say at CAB.

I am not familiar enough with all the rules - others here clearly more so.   And the basics aren't designed around faulty meter scenarios.  

But others here have referenced more explicit guidance as issued on issues like backbilling - I wonder if that covers things like first bills and/or faulty meters.

MWT

Scot_39 said:

@MWT - how does the first bill rule apply for non DD customers - as OP's daughter sounds like went on standard credit for over a year (Oct 22 - early 24) ?

Are those rules in public domain  - like another part the license conditions (its 100s of pages - havent read most of them) ?

I wish all the nuances were properly codified, but they aren't, mostly the supplier have evolved their back-billing behaviour in line with Ombudsman interpretations and the occasional Ofgem gems of wisdom.

The first year 'rule' just expands on the onus on the customer not to behave unreasonably, so failing to tell the supplier that you exist and failing to set up an account so you can be billed is 'unreasonable', thus the supplier can bill for more than 12 months on the first bill if the customer was actively preventing them from billing...

This case doesn't sound like that, but it is also unusual to allow a new customer to set up their account based on payment on receipt of a bill, so something sounds a little odd...  

Gower_rain

Thank you so much for all the advice. I agree that this is an unusual situation. The faulty meter was reported 11 months after installation and was thought to be the reason for the lack of billing for that period. The account was set up over the phone, and I have no idea why it was set up as 'pay on receipt of bill'. However, even once the meter was finally working in December 2023 (after EON failed to attend for the first appointment) it took until September 2024 to send a bill for the period from October 2022-October 2023. This is why I am not sure of the situation, in relation to back billing. I cannot see why there was a delay in sending the bill, even if it was just an estimate.

MWT

Gower_rain said:

Thank you so much for all the advice. I agree that this is an unusual situation. The faulty meter was reported 11 months after installation and was thought to be the reason for the lack of billing for that period. The account was set up over the phone, and I have no idea why it was set up as 'pay on receipt of bill'. However, even once the meter was finally working in December 2023 (after EON failed to attend for the first appointment) it took until September 2024 to send a bill for the period from October 2022-October 2023. This is why I am not sure of the situation, in relation to back billing. I cannot see why there was a delay in sending the bill, even if it was just an estimate.

As long as you are sure that your daughter provided all necessary details and opened her account with them in October 2022 then I would raise a complaint and if necessary take it to the Ombudsman after going through their complaints process. 

There is no general exemption for the first bill unless the customer has frustrated the process.

QrizB

Secondary to all the discussion about back billing, there's also this:

Gower_rain said:

She moved into her current flat in October 2022, ... in September 2024, she had been billed for the period from September 2022 (i.e. before she moved) until October 2023, 

Your daughter became liable for the energy bills on the day that her tenancy commenced (if she was renting) or on completion day (if she was buying the flat). She's not liable for energy use before that date.

Can you confirm the dates & meter readings that EON opened the account with, and the dates & meter readings when you daughter became liable?

Gower_rain

The smart meter was fitted when she moved into her flat in October 2022, so I do believe that the readings provided are correct, it is just that she wasn't sent a bill for the first year (up to October 2023) until September 2024. I've found this from the Supply licence guide: Metering, billing and payments 

SLC 21B Billing based on meter readings

· Suppliers must take all reasonable steps to obtain meter readings at least annually, and must make a bill or statement of account available at least twice a year, or quarterly where requested and/or if a customer has online account management (subject to specific exceptions for PPM, smart customers and unmetered supply customers).

Is this relevant in my daughter's case?

EON is still claiming that this is not a back billing issue and is not sending a deadlock letter, even though I have asked for one.