Overcharged on Gas or Electric — What to Do

Energy bills in the UK have been a source of frustration for millions of households. But beyond general price increases, many customers are genuinely overcharged — through estimated readings, billing errors, incorrect tariffs, or back-billing. If you suspect your gas or electricity bill is higher than it should be, you have real options.

This guide covers how to identify an overcharge, what rights protect you, and the exact steps to get your money back.

How to tell if you have been overcharged

Not every high bill is an overcharge — usage can spike in winter months. But several red flags suggest a genuine billing error:

Your bill is based on estimated readings

Estimated bills are the single biggest cause of overcharges. Your supplier guesses your usage based on historical data or national averages, and these estimates are frequently too high. Check your bill for an “E” next to the meter reading — this means it is estimated, not actual.

The fix is simple: submit an actual meter reading. Your supplier must recalculate your bill based on real data. If you have been overpaying on estimated bills for months, you are owed a refund or credit.

Your usage seems impossibly high

Compare your bill to the same period last year. Ofgem publishes typical domestic consumption figures: a medium-use household uses approximately 2,700 kWh of electricity and 11,500 kWh of gas per year. If your bill suggests usage far above these benchmarks and your circumstances have not changed, there may be a meter fault or billing error.

You have been back-billed

If your supplier suddenly sends a large bill covering many months of past usage, this is called back-billing. Under Ofgem rules, if the supplier was at fault for not billing you correctly, they cannot charge for energy used more than 12 months ago. This is the back-billing rule, and it is one of the strongest protections available to UK energy customers.

You are on the wrong tariff

Check which tariff you are on. When a fixed-rate deal expires, suppliers move you to their default variable tariff, which is typically much more expensive. If you were not clearly informed about this change, you may have grounds for a complaint.

Your direct debit is too high

If your monthly direct debit is significantly higher than your actual usage, your supplier may be building up a credit balance on your account. You have the right to request a review of your direct debit amount and to claim back any credit balance. Under Ofgem rules, suppliers must set direct debits at a reasonable level based on your actual or expected consumption.

Your rights when you are overcharged

Right to accurate billing

Under their Ofgem licence conditions, energy suppliers must bill you accurately and promptly. This means using actual meter readings where available, setting reasonable estimates where actual readings are not available, and correcting errors when they are identified.

Right to a refund of credit balances

If you have been overpaying via direct debit and have a credit balance on your account, you can request a refund at any time. Your supplier cannot refuse this without a valid reason. Ofgem specifically monitors suppliers who hold excessive credit balances.

Back-billing protection

The 12-month back-billing rule means your supplier cannot charge you for historical usage if they failed to bill you properly. This applies whether the failure was due to not reading your meter, not sending bills, or system errors on their part.

Right to complain and escalate

You have the right to complain to your supplier and, if they do not resolve the issue within 8 weeks, to escalate to the Energy Ombudsman for free. The Ombudsman can order bill adjustments, refunds, and compensation.

Step-by-step: How to get your money back

1. Gather your evidence

Before contacting your supplier, collect:

• Recent bills (at least the last 12 months) showing the disputed charges
• Actual meter readings — take a photo of your meter with a timestamp
• Bank statements showing your direct debit payments
• Any previous correspondence with your supplier about billing

2. Write a formal complaint

Contact your supplier in writing (email is fine). Your complaint should clearly state:

• What the problem is (overcharge, estimated billing, back-billing, wrong tariff)
• The specific amount you believe is incorrect
• Which regulations apply (Ofgem licence conditions, back-billing rules, Consumer Rights Act 2015)
• What you want — a recalculated bill, a refund, or a credit to your account

Citing specific regulations in your initial complaint significantly increases the chance of a quick resolution. Suppliers take regulatory references seriously because they know Ofgem monitors compliance.

3. Follow up and escalate if needed

If your supplier does not respond within 2 weeks, chase them in writing. If they reject your complaint or offer an inadequate resolution, you have two options:

• Wait 8 weeks from your initial complaint, then escalate to the Energy Ombudsman
• Request a deadlock letter — ask your supplier to confirm in writing that they cannot resolve your complaint, which allows you to go to the Ombudsman immediately

4. Claim compensation for the impact

If the overcharge has caused you financial hardship, stress, or significant inconvenience, you may be entitled to compensation on top of the billing correction. The Energy Ombudsman routinely awards £50 to £500 for distress and inconvenience, with higher awards for more serious cases.

Common supplier tactics and how to respond

• “Your usage has increased”: Ask them to prove it with actual meter readings. If they are using estimates, insist on a recalculation based on real data.
• “You need to provide meter readings”: You do — but they also have a legal obligation to take readings themselves or install a smart meter. If they failed to read your meter for months, that is their failure, not yours.
• “The back-billing rule does not apply”: It applies whenever the supplier was at fault for not billing correctly. Unless you deliberately obstructed meter access, the rule protects you.
• “We can offer a payment plan”: A payment plan does not address the underlying overcharge. If the bill is wrong, it needs to be corrected first.