Mar 24, 2025, 1:49 PM
Mar 24, 2025, 1:49 PM

Martin Lewis criticizes Scottish Power for unfair billing practices

Highlights
  • Martin Lewis criticized UK energy firms for their back-billing practices during a speech to the Energy Security and Net Zero Committee.
  • He highlighted the case of consumers who might not receive sufficient communication on meter readings, leading to unreasonable billing.
  • Lewis urged that stricter regulations and enforcement are necessary to protect consumers from unfair charges.
Story

In recent discussions, Martin Lewis has voiced significant concerns regarding the billing practices of energy firms in the UK, especially highlighting the issues of back-billing. This practice involves energy companies sending unexpected bills for energy usage that occurred more than a year ago. Lewis testified before the cross-party Energy Security and Net Zero Committee, arguing that current regulations only allow back-billing for a maximum of 12 months if no unreasonable obstacles exist, however, he pointed out that this is open to varying interpretations. He mentioned that the lack of strict enforcement enables energy companies to back-bill customers even when it may not be reasonable. One of the chief examples Lewis provided was an account where a customer was unavailable for a meter reading, and the energy provider claimed to have made sufficient attempts to contact them through letters. The individual stated they had not received these letters, leading to a conflict regarding whether the energy firm's efforts were adequate. Lewis stressed that many consumers might simply comply with bills presented to them without the knowledge or capability to dispute such charges, which raises concerns about fairness and consumer protection in the sector. Scottish Power was specifically mentioned by Lewis as being 'particularly abominable' in its billing practices over the years. He expressed hope that improvements had been made but noted that his experiences and those of others suggest systematic issues remain. As these problems persist, he cautioned that many customers continue to be put at a disadvantage due to poor communication and enforcement of existing regulations. Lewis pointed out that the energy landscape is evolving, with modern technology such as smart meters promising a more accurate and timely reflection of energy use, which should in theory lessen the burden of billing inaccuracies. In conclusion, Lewis argued for the consideration of reducing the allowable back-billing period to six months, given the digital age we live in and the capabilities of new technologies. This change could potentially avoid unnecessary financial strain on consumers. As he communicated his concerns during the inquiry, Lewis's focus remained on the importance of protective measures for consumers against unfair billing practices, emphasizing that many families risk falling victim to problematic systems without the resources to contest them effectively.

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