Energy suppliers will not be able to back bill micro businesses for more than a year from November.
Ofgem has introduced a licence condition that covers both gas and electricity.
While some suppliers had already signed up to a voluntary arrangement, the licence condition formalises the requirement.
Ofgem said it was needed because back billing complaints had risen steadily year on year and that many suppliers had not signed up to the voluntary agreement. Even where they had, there are different levels of protection, with some firms only limiting backbilling to several years, rather than one.
See details here.
CMA: Small firms being ripped off by £500m a year
Small firms growing tired of constant calls from brokers
Competition watchdog puts small firms and TPIs under microscope
Regulate TPIs and implement price caps for small firms, says FSB
Click here to see if you qualify for a free subscription to the print magazine, or to renew.
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.