Energy Firms Warned of Fines Over Billing Errors
Industry regulator calls for improvements in billing
6th July 2005
Ofgem, the energy industry regulator, has warned energy firms that they could face regulatory action including fines if their customer billing practices don't improve.
Of particular concern was the practice of 'back billing', where a new customer didn't receive a bill when service was commenced, leading to a larger bill months later.
Ofgem has called for an independent body to be set up with the power to investigate billing complaints and award customers compensation if necessary.
The criticisms come after consumer watchdog Energywatch made a 'super complaint' over 'incompetence' in billing procedures and persistent failure to address the issue.
Ofgem has given the energy industry a year to improve the situation, including limits to back billing, while reminding of it's powers to impose fines of up to 10% of turnover in extreme cases.
Read More: BBC Report
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