Energy suppliers are known to send ‘back bills’ to businesses when they have been charged incorrectly for their energy usage.
There are multiple reasons as to why energy suppliers may have under or overcharged your business. One way is by relying on estimated meter readings instead of providing actual meter readings throughout the year, another is through inaccuracies in the suppliers’ billing systems.
Poor energy management from your business can lead to under or over payments going left unnoticed for months and resulting in a hefty ‘back bill’. Unsurprisingly, it is more common for energy suppliers to ‘back bill’ a business when they have undercharged them. They tend to go quiet when it is the opposite way round! TOP TIP: Get in touch with us to ask about our revenue recovery services if you have a feeling that you may have been historically overcharged.
The build up of arrears on an energy account can cause businesses to owe thousands in debt, leading to unexpected problems in cash flow.
The good news is that the suppliers are limited as to how far they can go back. The back-billing legislation is under the Limitations Act of 1980, which means UK energy suppliers are not allowed to claim back money for any errors over six years old. However, this also applies to errors when they may have charged you too much! (If you are interested in that chat about our revenue recovery services, it may be best to do it now!)
Whilst we can help minimise or reduce any back bill overcharges that arise, or even claim back money for you when the supplier has historically overcharged you, we are big believers in ‘prevention is better than cure’!
Our managed service solution is aimed at making sure you are never landed with a nasty back bill for underpayments, or end up paying the energy supplier too much each month. We essentially provide your business with the tools and expertise to take complete control of your energy costs. From energy monitoring of your consumption, to automatic bill validation you can be sure that ‘back bills’ will be a thing of the past!
We have three tips, you can use to prevent receiving a ‘back bill’ from your energy supplier;
- Check your invoices are as per your contracted rates and that they are calculated correctly. If you don’t have the time to do this yourself, our automated software will can do this for you
- Take Monthly meter readings or switch over to a smart meter so your readings will be accurate and preventing you from being billed on estimated usage figures
- If there is an inaccuracy, you need to deal with it right away. Don’t bury your head in the sand, the problem won’t go away and could turn nasty if you let it compound!
If you have an issue with back-billing or would like to discuss the options to prevent it from affecting your business then we would love to chat with you. Simply call us on 01244 506666 or fill in the form below;