A New Year, Same Billing Problems?

As we brace for Storm Chandra to hit, with weather warnings for severe levels of wind, rain, and snow issued across the UK, some may fear turning on their heating due to worries about the cost of their first energy bill of 2026. Receiving an energy bill is often the main catalyst for people to think about their energy use or to reach out to their energy supplier.

Energy billing errors are the second most common energy issue that people contact us about — in 2025, Citizens Advice’s consumer service team helped nearly 22,900 people with billing errors and Local Citizens Advice teams assisted 20,500 people with queries related to bills and meter readings.

Hanna’s* Story

Hanna contacted us because she had been receiving very high energy bills for the last 8 months, and her energy supplier had been automatically taking payments out of her account — some for £1,000 per month.

Hanna could not access her meter and could not provide meter readings. Nor had the energy supplier recently read her energy meter. This meant that the bills were based on estimated energy use. Hanna had raised a complaint with the supplier but debt collection agencies were pushing to recover the debt.

Whilst billing issues are not new, the high cost of energy caused by the energy crisis means that the consequences of bad bills are now more serious than ever. A surprise costly bill can have a dramatic impact on the average household.

Although prices have stabilised slightly, consumers continue to feel the impact, and for many households the worry of an unexpectedly high bill has intensified as the cost of living crisis drags on. The number of people in negative budgets continues to rise and the overall level of energy debt has reached historic highs, projected to reach £6 billion in 2026.

This is why energy bills — their accuracy, complexity, and cost — can have such a significant impact on people. They shape how people perceive their energy supplier, and billing remains the number one cause of formal complaints to the Energy Ombudsman, as well as a strong predictor of overall customer satisfaction.

David’s* Story

David was shocked when he received his most recent energy bill because it showed that he was over £700 in debt. Up to this point, David had always paid his bill on time and had credit on his account.

David called his supplier who investigated and found they had failed to automatically trigger a bill or payment for many months. This led to the debt building up and becoming so high.

Whilst the announcements made in last November’s budget promise some much needed hope that energy bills will reduce, on their own these steps won’t remove the fears of many around energy debt, or the need to ration energy consumption. It’s vital these pledges don’t overshadow the very real steps that suppliers and consumers can take to get billing right.

What problems are people facing?

• Inaccurate bills, often because bills are based on estimates rather than up-to-date meter data.
• Consumers billed for usage they are not responsible for, related to a previous occupier or errors that cause a consumer to be charged for another property’s usage.
• Difficulty reconciling closed accounts, either due to switching supplier or moving property.
• Receiving catch-up bills — consumers who haven’t been billed for some time, or have only received estimated bills may face unexpected catch up charges. With average monthly energy costs for a medium-sized household estimated to be close to £150, a bill that spans multiple months of previously uncharged energy use could be cripplingly high.
• Potential breaches of the back-billing rules — Ofgem rules prevent suppliers from billing for energy use older than 12 months. Yet, in 2025 over 1,700 people have reached out to us with concerns that suppliers aren’t following these rules.

What can be done to address billing problems?

More accurate billing

• For homes with smart meters, bills should always be based on actual meter data and never on estimates.
• If a smart meter isn’t functioning properly, a supplier should aim to fix the issue within 60 days.
• For homes with a traditional non-smart meter, suppliers should strive to obtain more frequent, accurate meter readings that are then used in a bill. Ofgem should consider introducing new automatic compensation if suppliers don’t use meter readings to provide accurate bills.

More frequent billing

• We recognise that consumer choice remains key, and for some, monthly billing is not right for them. However, the default should be for suppliers to issue either monthly bills or account statements that summarise accurate energy consumption and the amount of credit or debt on the account.

No shock bills

• Ofgem should provide scenario-based guidance to suppliers on their back-billing rules to reduce the number of back-billing violations.
• The current 12 month back-billing period should be limited to 6 months for people with smart meters, to protect customers from receiving shock-bills that they cannot afford.

What can consumers do to reduce the chances of a shock bill?

• Get a smart meter if they haven’t got one already. Smart meters send accurate real-time data regarding a consumer’s energy use to their supplier, reducing the likelihood of estimated bills.
• Where a consumer does have a smart meter, they should regularly check that the smart meter is working correctly. If a consumer believes their smart meter isn’t working, they should raise it with their supplier and ask them to fix the problem.
• Regularly review bills and direct debit amounts to ensure they are paying enough to cover their energy use.
• Regularly submit a meter reading — either online, via their app, or on the phone and ask that the next bill be based on that reading. If it isn’t, then a consumer should query this with their supplier.
• Query bills that seem incorrect with their energy supplier - consumers are entitled to an explanation of their bill and of their historical energy consumption, so they shouldn’t be afraid to ask.

Additional advice on billing, energy debt and smart meters can be found on the Citizens Advice website.

*Names have been changed to protect identities.