Backbilling
Backbilling Rules
12-Month Rule (Ofgem Regulation):
- Cannot charge for energy used more than 12 months ago
- Applies when we failed to bill accurately and on time
- Customer must not have prevented accurate billing
- Must inform customer in writing
Valid Backbilling Scenarios
We CAN backbill if:
- Customer provided incorrect readings
- Customer prevented meter access
- Meter was faulty (not our fault)
- Industry data flow issues outside our control
Invalid Backbilling Scenarios
We CANNOT backbill if:
- We failed to request readings
- We used estimated reads when actuals were available
- Our systems failed to generate bills
- We had information but didn't act on it
Handling Backbilling Complaints
- Check account history - when was customer last billed accurately?
- Review reading history - were estimates used unnecessarily?
- Determine fault - ours or customer's?
- If our fault and >12 months, apply backbilling protection
- Offer payment plan for valid charges
- Document thoroughly in case notes
Direct Debit Management
Direct Debit Reviews
Direct debits should be reviewed:
- Annually as standard
- When customer's usage changes significantly
- When customer requests
- When account builds large debit or credit
Setting the Right Amount
Formula: (Annual usage cost ÷ 12) + small buffer
Example Calculation:
- Annual usage estimate: 3,000 kWh
- Unit rate: 24p/kWh
- Standing charge: 45p/day = £164/year
- Total annual cost: (3,000 × £0.24) + £164 = £884
- Monthly payment: £884 ÷ 12 = £73.67
- Recommended DD: £75/month
Direct Debit Guarantee
- Customer can cancel at any time
- Changes require customer notification
- Failed payments don't incur charges
- Refund available if incorrect amount taken
Credits and Refunds
When to Offer Refunds
Customer entitled to refund when:
- Credit balance over £50 (varies by policy)
- Customer requests refund of any amount
- Account closing with credit
- Overpayment due to our error
Refund Processing Times
- Standard refund: 3-5 working days
- First-time refund: 10 working days (validation checks)
- Final bill refund: Within 6 weeks of final reading
Credit Balance Management
Options for customers in credit:
- Leave on account to cover winter usage
- Request full or partial refund
- Reduce Direct Debit amount
- Use to clear debt on another fuel
Final Bills
Final Bill Process
- Customer provides final reading and move-out date
- We calculate final usage up to that date
- Generate final bill within 6 weeks
- Refund any credit or request payment of debit
- Close account
Common Final Bill Issues
Estimated Final Bill
If customer didn't provide final reading:
- Use industry read if available
- Otherwise use estimated read
- Mark as estimate on bill
- Customer can dispute with actual reading
- Allow 12 months for customer to provide reading
Delayed Final Bills
If final bill not issued within 6 weeks:
- Investigate reason for delay
- Chase missing readings
- Escalate to billing team
- May warrant goodwill gesture
Migration Bills
What is a Migration Bill?
When customer switches to Octopus Energy:
- Previous supplier sends final bill
- We issue first bill (migration bill)
- Covers period from switch date to first bill date
- Often shorter period than normal monthly billing
Common Migration Billing Issues
Overlapping Bills
Customer billed by both old and new supplier:
- Check switch effective date
- Verify reading used by both suppliers
- If overlap exists, one supplier must issue credit
- Usually old supplier corrects their final bill
Opening Read Disputes
- Customer questions the opening reading we used
- Check industry data - was it actual or estimate?
- Customer can provide photo evidence of meter on switch date
- We can update if valid evidence provided within reasonable time
Business Billing
Business vs Domestic Billing Differences
- VAT: Business pays 20% VAT (domestic 5%)
- Climate Change Levy: Additional charge for business (unless exempt)
- Billing frequency: Often monthly or quarterly
- Payment terms: Typically 14 days from invoice
- Half-hourly data: Available for larger business meters
VAT Exemptions
Eligible for 5% VAT:
- Charities (charitable use only)
- Residential homes
- Small domestic use within business premises
Requires: VAT exemption certificate
Climate Change Levy (CCL) Exemptions
- Electricity from renewable sources (we can provide certificate)
- Domestic use
- Non-business charities
- Very small businesses (under threshold)
Billing Support Tips
Explaining Bills Clearly
- Use simple language, avoid jargon
- Break down each component
- Show the math step by step
- Compare to previous bills
- Use examples and analogies
- Confirm customer understanding
De-escalating Bill Complaints
- Acknowledge customer's concern and frustration
- Explain you'll investigate thoroughly
- Share your screen if possible to show calculations
- Offer payment plan if customer struggling
- Be transparent about what you can and can't change
- Follow up in writing with explanation
When to Offer Goodwill
Consider goodwill credit for:
- Billing errors that caused customer inconvenience
- Delayed bills or refunds
- Poor communication about bill increases
- Multiple contacts needed to resolve issue
Typical amounts: £10-50 depending on severity