Wrong bills, failed switches, disconnection threats, poor customer service—energy suppliers aren’t known for getting things right. When your supplier messes up, you might wonder whether you can take legal action. This guide explains when you can sue your energy supplier, and the faster, free alternatives that often work better.
This article is for informational purposes only and does not constitute legal advice.
The Short Answer
Yes, you can sue your energy supplier—but it’s rarely necessary. The Energy Ombudsman can award compensation up to £10,000 and their decisions are binding on suppliers. This free service resolves most disputes faster than courts.
Common Reasons to Take Action Against Energy Suppliers
Billing Errors
- Estimated bills wildly different from actual usage
- Being charged for energy you didn’t use
- Bills based on wrong meter readings
- Failure to apply correct tariff rates
- Backbilling beyond the allowed period (usually 12 months)
Failed Switches
- Switch that never completed
- Being billed by two suppliers
- Losing credit balance during switch
- Switched without your consent (slammed)
Poor Customer Service
- Unanswered complaints
- Broken promises
- Harassment over disputed bills
- Failure to respond within required timeframes
Disconnection and Prepayment Issues
- Wrongful disconnection or threat of disconnection
- Forced installation of prepayment meters
- Self-disconnection due to inability to top up
- Failure to offer payment plans for debt
Direct Debit Problems
- Taking incorrect amounts
- Increasing direct debits without justification
- Refusing to refund credit balances
- Continuing to take payments after you’ve switched
Your Legal Rights
Supply Licence Conditions
Energy suppliers must hold a licence from Ofgem and follow strict conditions, including:
- Accurate billing
- Fair treatment of customers in debt
- Proper complaints handling
- Protections for vulnerable customers
- Limits on backbilling
The Backbilling Rule
One of the most important protections: suppliers cannot backbill you for energy used more than 12 months ago if they failed to bill you or billed you incorrectly, and it wasn’t your fault. This applies to both domestic and microbusiness customers.
Consumer Rights Act 2015
Services must be provided with reasonable care and skill. If your supplier’s errors cause you financial loss, you may be entitled to compensation.
Protection from Disconnection
Suppliers cannot disconnect vulnerable customers during winter (1 October to 31 March). Vulnerable customers include pensioners, disabled people, those with chronic illness, and families with young children.
The Energy Ombudsman: Your Best Route
Website: www.energyombudsman.org
Phone: 0330 440 1624
The Energy Ombudsman is a free, independent service that resolves disputes between consumers and energy suppliers. It’s almost always better than going to court.
What the Ombudsman Can Do
- Award compensation up to £10,000
- Order suppliers to apologise
- Require suppliers to take specific actions (correct bills, refund money)
- Make binding decisions that suppliers must follow
How to Use the Energy Ombudsman
- Complain to your supplier first – You must give them a chance to resolve it
- Wait 8 weeks – Or get a “deadlock letter” saying they can’t resolve your complaint
- Contact the Ombudsman – Online, by phone, or in writing
- Provide evidence – Bills, correspondence, meter readings
- Receive a decision – Usually within 6-8 weeks
Success Rates
The Energy Ombudsman upholds complaints in the consumer’s favour in the majority of cases. In 2023, the average compensation awarded was over £100, with some cases receiving thousands.
When You Might Actually Sue
Court action might be appropriate if:
- Your claim exceeds £10,000 – Beyond the Ombudsman’s limit
- You’ve suffered significant consequential losses – Business interruption, health impacts, property damage
- The Ombudsman’s decision wasn’t enough – You can still go to court after
- You want to establish a legal precedent
Types of Legal Claims
Breach of contract: The supply agreement is a contract. If the supplier fails to meet its terms (accurate billing, continuous supply), that’s a breach.
Negligence: If the supplier’s carelessness causes you loss (e.g., failing to process a switch, causing you to overpay for months).
Breach of statutory duty: Failure to comply with licence conditions or consumer protection laws.
What You Could Claim
- Refund of overcharged amounts
- Interest on money wrongly taken
- Compensation for stress and inconvenience
- Consequential losses (e.g., bank charges from incorrect direct debits)
- Costs of alternative arrangements (if supply was interrupted)
Notable Cases and Enforcement
Ofgem Enforcement
Ofgem has fined suppliers millions for breaking rules:
- British Gas – Fined £11.1 million for billing failures affecting 220,000 customers
- E.ON – Fined £7.75 million for failing to meet smart meter installation targets
- Scottish Power – Fined £18 million for customer service failures
- Multiple suppliers – Ordered to pay back millions in overcharging
Prepayment Meter Scandal (2023)
Following revelations about suppliers forcing vulnerable customers onto prepayment meters, Ofgem imposed an emergency ban and suppliers agreed to compensation schemes. This shows how regulatory action can be more powerful than individual lawsuits.
How to Build Your Case
- Keep all correspondence – Emails, letters, chat transcripts
- Document phone calls – Date, time, who you spoke to, what was said
- Save bills and statements – Keep a timeline of billing errors
- Take meter readings – Regular photos with timestamps
- Note your losses – Bank charges, time off work, stress
- Get evidence of vulnerability – If relevant, medical letters or benefit statements
Step-by-Step: What to Do When Your Supplier Gets It Wrong
- Gather evidence – Bills, meter readings, correspondence
- Make a formal complaint – In writing, clearly stating what went wrong and what you want
- Set a deadline – Give them 14-28 days to respond
- Escalate internally – Ask for the complaint to be reviewed by a manager
- After 8 weeks, go to the Ombudsman – Or sooner if you get a deadlock letter
- If still not resolved, consider court – Small claims for amounts under £10,000
Automatic Compensation: Money You’re Owed Without Asking
Suppliers must automatically pay compensation in certain situations:
- £30 if they don’t give you notice of a planned power cut
- £75 (electricity) / £75-150 (gas) for missing appointments
- £30-70 if your supply isn’t reconnected within expected timeframes after a fault
- Various amounts for other service failures under the Guaranteed Standards
If you haven’t received automatic compensation you’re owed, claim it.
Key Contacts
- Energy Ombudsman: www.energyombudsman.org – 0330 440 1624
- Ofgem: www.ofgem.gov.uk – Report supplier misconduct
- Citizens Advice: Energy advice – 0808 223 1133
- Citizens Advice Consumer Service: Can refer to Trading Standards
Summary
You can sue your energy supplier, but in most cases the Energy Ombudsman is faster, free, and just as effective. They can award up to £10,000 in compensation and force suppliers to fix their mistakes.
Don’t suffer in silence. Energy suppliers make mistakes constantly. Document everything, complain formally, and escalate to the Ombudsman if necessary. You have more power than you might think.
Related Articles
For more on energy and UK consumer rights:
- Can I Refuse to Pay Energy Standing Charges?
- Can I Sue Over Mid-Contract Price Increases?
- Can I Sue My Bank?
- Can I Sue Debt Collectors for Harassment?
Need free legal advice? See our guide to free legal help in the UK.
