Some households with prepayment meters have been hit with unexpected extra charges – in some cases totalling hundreds of pounds – due to a billing error which meant they had been paying too little for their energy for months.
Hard-up families have been shocked by messages from energy supplier Boost asking them to pay hundreds of pounds because their smart meters gave incorrect readings and they were undercharged through no fault of their own. Their meters failed to record the new prices when energy costs rose in October last year.
Boost has apologised for the error, but dozens of angry customers have taken to social media to hit out at the demands, with some saying they were unable to find the extra money to pay for the unexpected bill so will be refusing to pay it.
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Boost - which supplies energy to 200,000 UK households - is the pay-as-you go arm of Ovo Energy, the UK's fourth largest domestic energy supplier.
Energy Support And Advice UK (Community), which has more than 180,000 followers, is awash with anger and shock about the bills, some of which are reported to be up to £700. One member said: "I've now placed an official complaint, as back in October I told them they were undercharging me and the rate was wrong. They told me no you're on the correct rate. I asked if the call was recorded and she said it was. I asked her to state I was being charged correctly and wouldn't receive a request for money and she did.
"I even called the complaints team who actually said that I shouldn't have told them as its their error and I wouldn't have to pay back. So I had two members of Boost tell me I wouldn't pay back yet five months later I get the email. I will not be paying!!"
One customer on a Facebook page called Boost Energy UK - Failing its customers - what to do next said: Just had an email from Boost stating that my gas meter didn’t update the price increase correctly in October. They now say I owe them £193.39, this is with it reduced by 10% for the mistake. Who should I contact regarding this I don’t see why I should have to pay for their mistake as I have a smart meter installed so should update automatically."
Below we explain what's happened and your rights.
What has happened?
Ovo, Boost's parent company, blames a "technical issue" which it says meant some meters weren't correctly updated with the new energy rates when prices went up in October last year.
What has Boost said about it?
A spokesperson for Ovo, which owns Boost, said: "A small number of customers were incorrectly paying too little for their energy for a short period of time due to a technical issue. We're very sorry and needed to put this right. We're here to help any customers who would like additional support with an affordable plan."
How will I know if I am affected?
The message says that the company has reduced the total amount owed by 10% 'to say sorry', but it was cold comfort to many pay-as-you-go customers, who tend to be on low incomes and have been badly hit by rising energy prices.
The email is titled: 'We've not been charging you enough' and goes on to say 'Unfortunately, when our prices went up in October, your meter wasn't updated due to a technical problem. This means we were charging you less than we should have for a short period of time. We're sorry about this.' Then, in larger typeface, it continues: 'What happens next: you will need to pay back the difference.'
Will I have to pay the extra?
In most cases, yes, although Boost has waived the bills for some customers.
According to Money Saving Expert, unless you fall into one of the two categories outlined below, you will need to pay for the extra costs – though Boost says it has reduced the amount owed by 10% "to say sorry for the mistake".
- 'Vulnerable' customers. Boost wouldn't specify exactly which customers it defines as vulnerable, though it's understood this includes those who need a constant supply of energy and some others. Boost also wouldn't confirm if it would waive the extra charges for those who are vulnerable but weren't picked up as such by its systems.
- Customers who already had a debt of more than £500. If you were already paying back a debt of more than £500 to Boost through your meter, you won't have any more debt added on as a result of this issue.
How will I pay this back?
You don't need to pay the full amount upfront – instead, a proportion of the credit on your meter will go towards repaying the debt each time you top up. This means you'll need to top up more than usual as some of the money will go towards paying the debt.
Why do I have to pay when it's not my fault?
Boost is allowed to charge you despite being responsible for the error. Industry regulator Ofgem has rules in place when it comes to energy back-billing – where you've been charged the wrong amount and your supplier sends you a catch-up bill.
Generally, energy firms are allowed to charge you for any unpaid usage during the past 12 months if you've not previously had an accurate bill for that usage, regardless of whose fault it was. As the meter error started in October 2022, Boost is allowed to charge you the difference between what you should have paid and what you actually paid. However, under Ofgem rules, Boost must ensure any repayment plan it sets up is affordable for you.
What happens if I can't afford to pay it back?
Energy suppliers, including Boost, must take into account how much you can afford when asking you to repay a debt. This includes reviewing any plans that have already been set up. If you're unhappy about being asked to pay more, or the extra amount is unaffordable, contact Boost to discuss your options. You can do this using the online chat on its website or by calling 0330 102 7517.
I'm not happy. What's the next step?
You can raise an official complaint by calling 0330 102 7517 or by emailing complaints@boostpower.co.uk. If Boost fails to resolve your concerns or more than eight weeks have passed since your complaint was raised, you can then take it to the Energy Ombudsman, an independent body that handles disputes.
Gary Caffell, energy and utilities editor at MoneySavingExpert.com, said: "It's disappointing that at a time when many are struggling to pay their energy bills already, households are being put into debt through no fault of their own. As it was the company's mistake, it would have been nice if it could have taken the hit as a gesture of goodwill, rather than putting the burden on customers, particularly in the current climate."
And Ian Thompson, of Energy Support And Advice UK said: "Over the last few weeks, we have had growing reports of customers of Boost Energy who have receiving demands for large debts which have built up through no fault of their own. People generally have prepayment meters to help them budget and not run up large debts they would struggle to pay, so this is terrible news for them. Unfortunately, Boost is completely within its rights to ask for repayment of the cost of energy which customers have already used, even when it is their error which has caused the problem.
"This issue is a growing trend across more than one supplier, and we think what we have seen so far might just be the tip of the iceberg. However, customers should challenge their supplier if they are asked to pay back debts caused by incorrect billing for energy used more than a year ago, as Ofgem back billing rules only allow energy used in the last 12 months to be billed for."
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