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Energy bill debts warning

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  • Energy bill debts warning

    People could be racking up debts of hundreds of pounds on their energy bills without realising it, a national charity has warned.

    Thousands of people with estimated gas and electric bills have contacted the Citizen's Advice Bureau (CAB) when they racked up arrears because they thought their direct debits were covering their energy costs.
    In the worst cases people have found themselves owing up to £1,000, the BBC reports.
    The CAB blames the problem on rising energy costs and billing issues.
    Spokesman Tony Herbert told the broadcaster that with more hikes in energy costs expected this winter, the problem was likely to get worse.
    "Families can rack up huge fuel bills without even realising it because the amount they're paying is actually based on estimated readings," he said. "They might have a direct debit set up; they might think they're paying their bills. But because they're paying on estimated readings it may not reflect how much they're actually using."
    The gas and electricity watchdog Energywatch told the broadcaster a third of all energy bills are estimated and could therefore be wrong.
    Spokesman Adam Scorer said: "They're not based on real meter readings, they're not based on real consumption data. You can just imagine the problems that will come out from the fact that a third of bills in Britain are by and large wrong."
    Industry body the Energy Retail Association said the majority of the 200 million bills its members send out every year are correct.

  • #2
    Re: Energy bill debts warning

    Just £1000 ?

    My bill to E.ON turned out to be £1950 because I was paying a monthly payment that I thought was covering the costs and it wasn't (though this was accrued over 3 years). It only came to light when I suddenly had a final demand !!

    Comment


    • #3
      Re: Energy bill debts warning

      Hi Jester,
      Have you sorted this out now or is it ongoing?

      Comment


      • #4
        Re: Energy bill debts warning

        After we had the ppmeter removed and changed supply our gas bill was £400 in just a few months! We were only paying £20 per month dd, luckily I have the partner that I have, who calls up with meter readings every quarter and noticed that our £20 a month wasn't making a dent. The gas people didnt ask us to increase our dd, surely they noticed to that £20 a month was never ever going to cover it.

        We have been paying £100 a month for the last 2 months to try and get it down again.
        Dragging myself and my family back into the light with the help of Beagles.

        My Hardship Claim
        Me VS Abbey Win
        BIL HSBC Credit Card
        BIL EGG
        BIL HSBC Loan
        BIL PPI Win




        Comment


        • #5
          Re: Energy bill debts warning

          Enaid,

          Fortunately, that happened early last year when I still had a job. I simply paid the amount with a credit card. If it had happened now I'd have been well screwed !!

          Comment


          • #6
            Re: Energy bill debts warning

            Just to play devils advocate here.... and I can comment because I fell into the same trap...

            Dont people check their bills when they're estimated? Wouldn't you kick up a fuss if your BT phone bill was estimated??

            The truth is, an estimate is just that, an estimate... it is always better to get meter readings...

            Loulou
            Neither a borrower nor a lender be;
            For loan oft loses both itself and friend,
            And borrowing dulls the edge of husbandry.

            Comment


            • #7
              Re: Energy bill debts warning

              Originally posted by loulou View Post
              Just to play devils advocate here.... and I can comment because I fell into the same trap...

              Dont people check their bills when they're estimated? Wouldn't you kick up a fuss if your BT phone bill was estimated??

              The truth is, an estimate is just that, an estimate... it is always better to get meter readings...

              Loulou
              No, most people don't check their bill.

              Comment


              • #8
                Re: Energy bill debts warning

                It used to be the case that the utility companies were obliged to read the meter once every three months. After much complaining about how this impacted on costs, it was decreed that a meter must be read once every 24 months.

                By all means give them a reading you have taken each billing cycle, but insist that the meter is read at least once every 24 months...if they fail to do this then they are breaching the terms of their operating licences...

                Comment


                • #9
                  Re: Energy bill debts warning

                  Quite a few people dont get paper bills any more so it isnt in your face once a month/quarter and you tend not to log on online to view bills unless there is a problem.

                  I used to call every couple months with an up to date reading on my meter. They still got the bill wrong tho lol.

                  Now I'm on prepay.


                  Is it only once every 24 months they are obliged to read it ? Thats quite a long period - especially as if they get it wrong they can only go back a year to make up the shortfall.
                  #staysafestayhome

                  Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                  Received a Court Claim? Read >>>>> First Steps

                  Comment


                  • #10
                    Re: Energy bill debts warning

                    Originally posted by Amethyst View Post
                    Is it only once every 24 months they are obliged to read it ? Thats quite a long period - especially as if they get it wrong they can only go back a year to make up the shortfall.
                    Yup...and I'm all for them reading their own meters every six months...after all, I fail to understand how they can bill customers for an indeterminate usage...

                    You buy a pound of bananas, you pay for a pound of bananas...with utilities you really need to question just what you are paying for...the companies themselves don't know. Regular readings would solve that, and would mitigate some of the forward debts...

                    You sure about clawing back being limited to twelve months? Surely they would just massage the figures so that what you have paid to date was settlement for your usage in months 1-12, and that what they are claiming now (after a 24 month reading) is settlement for usage in months 13-24.

                    Comment


                    • #11
                      Re: Energy bill debts warning

                      Originally posted by loulou View Post
                      Just to play devils advocate here.... and I can comment because I fell into the same trap...

                      Dont people check their bills when they're estimated? Wouldn't you kick up a fuss if your BT phone bill was estimated??

                      The truth is, an estimate is just that, an estimate... it is always better to get meter readings...

                      Loulou

                      We dont get paper bills and try as we might we can not get the oline account to work, it crashes on us constantly.
                      Dragging myself and my family back into the light with the help of Beagles.

                      My Hardship Claim
                      Me VS Abbey Win
                      BIL HSBC Credit Card
                      BIL EGG
                      BIL HSBC Loan
                      BIL PPI Win




                      Comment


                      • #12
                        Re: Energy bill debts warning

                        The E-on online service is good when it works (not that often IME)...or when you can remember your password lol.
                        #staysafestayhome

                        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                        Received a Court Claim? Read >>>>> First Steps

                        Comment


                        • #13
                          Re: Energy bill debts warning

                          lol... forgetting your password isnt EONs fault Ame you plonker...

                          Waggle - Yes they are only allowed to bill you for consumption used over a 1 year period in the abscence of any bills being sent... this is not done through their (EON, cant comment on other companies because I dont work there) billing system, it is done manually, and although I would like to cook up a conspiracy theory there isn't one, people are told to calculate bills correctly, these are then checked and double checked and checked again... the loss would be too great if they were caught fiddling the bills.

                          I did get caught out for not checking my bills, and I have paper free billing... and I work at EON so I really have no excuse for not checking my bills ffs... I know we all do it, yet it is such a simple thing to do...

                          and last I knew, it was a meter reading once every three years....

                          Loulou
                          Neither a borrower nor a lender be;
                          For loan oft loses both itself and friend,
                          And borrowing dulls the edge of husbandry.

                          Comment


                          • #14
                            Re: Energy bill debts warning

                            My payments have just gone up from 30£ to £88 a month. I used to be really good about checking bills, but it fell by the wayside. Am chcecking again now though! Only prob is that if they are underestimated now, I wouldn't really want to own up to it cos I'd end up paying even more each month which I couldn't afford. On the plus side though, if they are overestimated, which the last one was, it will go towards getting the balance down quicker. And we've taken the fuse out of the tumble dryer lol. Although now son has left home the tumble dryer was having a rest anyway.:tinysmile_grin_t:
                            Is no longer here

                            Comment


                            • #15
                              Re: Energy bill debts warning

                              I never understood why the energy companies don't use automatic monotoring technology. This technology goes back for years, is simple and effective, and would allow people to be billed accurately. I suspect it is a simple case of it costing too much... after all, it doesn't matter if you get the bills wrong because you only read them every 3 years, you just recoup any error from the customer.

                              Comment

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