Energy News

Estimated energy bills catching out unaware customers

Tuesday 15 July, 2008

By becca.talbot@consumerchoices.co.uk

BBC News reported yesterday that estimated energy bills could be mounting up debts of hundreds of pounds each month for oblivious customers, according to the Citizens Advice Bureau.

The charity said it had received a flood of inquiries from customers over their estimated gas and electric bills, with some worst cases finding they owed over £1,000 because they had believed their direct debits were covering their energy costs.

With Energywatch predicting that up to a third of all bills could be inaccurate due to estimated meter readings; Citizens Advice blames the problem on increasing tariffs and billing issues.

Senior policy officer with the charity, Tony Herbert, feels that with the energy cost forecast for this winter rising even more, the problem will get worse before it gets better:

“Families can rack up huge fuel bills without even realising it because the amount they’re paying is based on estimated readings.”

“They might have a direct debit set up; they might think they’re paying their bills,” he said, “but because they’re paying on estimated readings it may not reflect how much they’re actually using.”

Experts estimate that household energy bills will rise by more than 40% this winter as wholesale gas and oil prices reach record highs. These steep increases mean an individual household could be paying as much £400 more each year, on average, for their gas and electricity.

Chris Eagle Commercial Manager at EnergyChoices.co.uk advises customers to be more responsible for their meter readings: “If you don’t check your estimated meter readings, you could find yourself owing your energy provider a lot of money as your direct debit won’t cover your monthly bills.”

Discovering that you owe your gas and electric company money could restrict you from switching providers, and therefore cost you even more each year.

“Checking your meter is easy, and there are so many ways you can submit an accurate reading – online, by phone or by post,” says Chris Eagle. “You could potentially save yourself hundreds of pounds a year by being more vigilant about your estimated meter readings.”

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