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Citizens Advice has called for Ofgem to "radically reduce" the length of time suppliers can back-bill customers or scrap the practice entirely, after research revealed as many as 2.1 million households could have been hit by large late bills.
The research found that the average customer back-bill was around £206, with 15 per cent of those who had been back-billed claiming they were charged more than £250, after energy companies undercharged them last year.
Suppliers can currently back-bill a customer for up to 12 months of gas and electricity, regardless of who is at fault for the undercharging.
Citizens Advice chief executive Gillian Guy said: “Customers shouldn’t have to pay the price for suppliers’ mistakes.
“Energy bills are already high so it adds insult to injury when companies go back to customers looking for more money after they got it wrong.
“Smart meters provide a perfect opportunity to consign back-billing to the history books. As they are rolled out across the country. Ofgem should ensure suppliers reduce the length of time they can back-bill customers.”
Billing errors are the number one energy problem, according to Citizens Advice, with 16,000 cases reported last year.
The consumer organisation suggested the smart meter roll out, which aims to offer a smart meter to every home by 2020, will help ensure bills are more accurate.
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