Ofgem demand action from energy firms over back billing
Published On Feb 21, 2025, 8:15 PM
The UK energy regulator Ofgem has issued a warning to electricity and gas suppliers regarding the illegal practice of back billing, where customers receive new bills for energy used more than 12 months ago. This practice was banned in 2018, yet it continues to affect thousands of customers. Ofgem is demanding reports from energy suppliers on the extent of this issue and has stated that companies found violating these rules could face fines. Complaints to Citizens Advice regarding billing have increased significantly, indicating widespread dissatisfaction among customers.
Stock Forecasts
EQT
Negative
The focus on regulatory enforcement and increased scrutiny on energy suppliers may negatively impact their financials as they could face fines and reputation damage if found guilty of back billing. Investors should be wary of energy firms that may struggle with compliance and see decreased consumer trust leading to an impact on their stock prices.
ICLN
Positive
With heightened regulatory actions and ongoing consumer complaints, the pressure on energy suppliers could create opportunities for investors in alternative energy sectors and renewable energy companies that offer more transparent and consumer-friendly billing practices. This shift in focus could lead to positive sentiment and investment potential in the renewable sector.
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