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Energy companies so-called 'estimated use'

(40 Posts)
MamaCaz Sat 28-Apr-18 08:47:47

My mum's energy company is trying to get her to change tariff now, a couple of months before the existing one ends. Based on their 'estimated' usage, her annual bill would be even lower on the new tariff than it is now.

Naturally, I have compared this estimate with actual usage over the last year, and the two bear no resemblance. The figures they have suggested seem to have been plucked out of thin air, which infuriates me given that she has been with them long enough for them to have accurate figures.

What they said was:
The prices outlined above are what we estimate you will pay based on your estimated energy consumption of [...] Your Personal Projection is an estimate only and your actual costs will vary according to your usage.

What they meant was:
We have made up some very unrealistic figures, hoping that you are gullible enough to believe them and move immediately onto a much more expensive tariff than your current one.

How do companies get away with this?

I chose to put this on 'Chat' rather than a more specific topic because it is just a general rant, rather than a request for advice etc.

BRedhead59 Tue 01-May-18 10:46:19

E. ON tried to put our bill up 80% we told them that unless they reduced that we would go elsewhere they reduced it to a 30% increase - we still might.

Shizam Mon 30-Apr-18 23:27:00

No!!! Companies don’t have to get away with this! Go on moneysavingexpert forum. Martyn Lewis. He is completely independent and can steer you to cheaper options. There are also forums like the bigenergyswitch.com that offer to do it for you each year. Do not sit on a variable tariff and let them take your money!

Margs Mon 30-Apr-18 14:58:07

Indeed, MamaCaz, energy firms work very hard at trying to screw us for more than we can realistically afford.

My energy company (sorry, I should call them the 'Provider' these days, shouldn't I?) E.on send me a letters regularly each money (for about 16 months now) warning me that I HAVE to switch to a Smartey-Arse meter because it's 'Government Policy'. What they would like to say is "It's The Law!" but obviously I's get them bang to rights for making a false claim like that.

They also tell me that these meters are free. Is that so? Are they provided by some magical Smart-Meter faerie out of the goodness of her heart?

But I've heard and read far, far too many horror stories about these damn things and how more people refuse them than accept them.

I always take the view that energy companies ALWAYS act in their own greedy fiscal interests and don't give a toss about the customer......

Jane10 Mon 30-Apr-18 11:28:46

Gosh GabriellaG! What a consumer activist. You really sorted them out. Well done.
I'm just off the phone to EDF. Estimated usage for forthcoming year now much reduced along with monthly direct debit. Apparently the last person I had dealt with had entered info wrong with resultant undercharging. angry. However, all now sorted (I hope) and they're even coming to remove a defunct meter that I was having to pay a standing charge for. What a stress it all is. Hope that's it for now.

GabriellaG Sun 29-Apr-18 23:16:52

Grannyknot

I had a long running dispute with BG from Oct 2010 until February 2018.
They too billed me as a business (I told them 3 weeks before moving in that I was a residential customer) for 4 months and it went right to the CEO. The business side is a completely separate arm and they have no ability to liase with the residential side of BG.
I went to CAB, Energy Ombudsman, paid £10 for all data and phone calls via the FOI act and sent BGB a bill for my time and calls which they initially laughed at but eventually sent a cheque for £300 (I originally asked for £500) and another chq for £50 a few months later.
There's much more but to cut it short, I also took them to the County Court, however, they didn't turn up and I was awarded £3700 by default.
All because they tried to squeeze £238 that I didn't owe, out of me.
Luckily, I kept all emails and notes of calls made to prove that even the CEO of Centrica agreed with my version of events.
BGB cannot win against facts if you are right.

SueDoku Sun 29-Apr-18 16:07:59

I'm with EDF, on a fixed-rate tariff. I have just had a letter saying that a) they will be sending me a cheque for £64 (yippee..!) as they had overestimated how much energy I would use, and b) my direct debit will be going up by £12 a month.!! shock You couldn't make it up...

Teacheranne Sun 29-Apr-18 13:56:40

When I retired 18 months ago, I had the time to price check my energy costs and other expenses such as home and car insurance. By switching providers, I saved over £1000 a year! I was shocked at that amount!

I am now with Sainsburys for my gas and electricity and have been very pleased with their service. It is somehow linked the British Gas, something called "grey gas", but so much cheaper and very friendly staff. They had to replace my gas meter because of something EON did when they attached a smart meter. I am registered with Martin Lewis and got an email with new, better tariffs at the end of 12 months but Sainsburys were still the best for me.

My mother, aged 85 with Alzheimer's, is being pestered to have smart meters fitted, the letters imply she has to have one but I know that is not the case. She still has enough capability to live on her own with a little help from her children but gets very flustered with new technology so she is quite upset and confused about having a smart meter. So far I have managed to convince her that she does not have to agree, but it is annoying how frequently they write to her.

CardiffJaguar Sun 29-Apr-18 12:48:38

Evergy companies estimates are never right; their computer systems cannot realistically know what is happening in every home. On top of that they want to maximise their 'free' income, having monthly credits in excess of what is needed to cover your annual usage.

Every company I have been with has advised me that I am not paying enough. I disagree and refuse to permit any change in my monthly payment. Guess what? My figures prove to be sufficient over the 12month period.

I have records going back over 30+ years in the same house, and their computer figures cannot match that. I have always recorded units used never the actual costs and when their staff know this they reluctantly back down.

As for changes to tariffs then I have relied upon Martin Lewis' moneysavingexpert site with its separate club just for energy matters. I recommend it.

Annakist Sun 29-Apr-18 12:48:08

What happened to me relates to meters, rather than smart meters, but I do still think about it. A couple of years ago I had a letter from E.ON, my supplier, telling me that as I'd refused entry to their engineer on two occasions, if necessary I would be forced by police/Court to allow entry. I rang them to let them know that nobody had called, nor left a card, and I didn't like being threatened. Apparently I was mistaken, at least according to them, and the engineer had left a card both times he'd called. I arranged with them for the engineer to visit one day the following week between 7.30 and 11.00 to change the meter. Of course, nobody showed up, and I rang them, and was told that the engineer HAD called, and been refused admittance by a man. I pointed out that I am a woman and lived on my own. Another appointment was made, and again nobody arrived, and when I called, I was told that the work had been done as the meters are outside my house. I told them that they most certainly are not, they are under the stairs. However, no amount of talking to them would persuade them that their engineer was clearly going to the wrong house (although the letter they'd sent proved they had the correct address and post code), and I was told that as far as they were concerned, the work had been done. (And of course, if the meters really were outside, why hadn't the engineer done the work on his first 'visit'?)

As soon as I was out of contract, I moved to First Utility.

pensionlesspensioner Sun 29-Apr-18 12:47:30

Forgot to mention on the one occasion where I submitted an incorrect meter reading this was flagged by the site with a request to contact them and I received an email reply confirming the correct reading and a link to a revised bill within hours.

pensionlesspensioner Sun 29-Apr-18 12:44:06

After a lifetime of being with British Gas I looked at the Ofgem site which had a list of energy suppliers who had signed up to their energy Switch Guarantee (unfortunately this page does not appear to be on their site anymore but they do have a lot of useful information for consumers). With my annual gas & electricity usage figures to hand I worked my way through them. (i.e. did not use a comparison site but approached each supplier directly for a quote and then checked the reviews for each supplier). SoEnergy were the clear winners and I have been with them for nearly a year and cannot recommend them enough. Their website is clear and concise. Cannot believe it took me so long to make a change for the better and yes I am paying less for my fuels.

CW52 Sun 29-Apr-18 12:17:25

I know it's nothing to do with this string but.......I got a smart meter before I left the country to visit family for 6 months ......then I got an email from SSE asking for a meter reading!!!! I emailed them and they replied
'sorry, the computer hasn't updated your account'...........then I got an estimated bill............I asked why and they said because we haven't updated your account..............really??

quizqueen Sun 29-Apr-18 12:11:03

Private companies are only in the business to make profits for their shareholders and pay their directors well to perpetuate that situation, we all need to remember that. They generally do not care a toss about their customers until they threaten to take their business elsewhere. As far as smart technology is concerned, my brain is the only smart thing I need in my household.

watermeadow Sun 29-Apr-18 11:58:41

Change to Bulb. No estimates, everything’s plain and clear and I don’t see them as unethical bloody criminals, which Scottish Power are.
You give Bulb your meter readings, they tell you how much you’ve used and what it’s cost. My monthly payment is rising but that’s the fault of the 7 month winter which looks set to continue until mid-summer.

GoldenAge Sun 29-Apr-18 11:19:50

Companies get away with this because they have government support. This government has done nothing to help reduce energy prices - quite the reverse, it has imposed the need for R&D and placed the responsibility for funding this in the hands of the consumers instead of in the hands of the treasury. Plain and simple.

Franbern Sun 29-Apr-18 11:01:25

I have been with EDF for some time now. I have to be with one of the larger companies as I am entitled to the Warm Home Discount (paid directly to my electricity supplier), but only the larger companies seem to be able to provide this.
I have usually changed tariff whenever they advise me to do so on my bill (on the computer). Accidently, last time I did this I agreed to go on one with expensive cancellation clause (my own fault, did not read fully). So, am waiting for that to reach its end before changing.
Yes, they do amend the DD payment, although on several occasions I have felt it was too low and have amended it myself upwards. I would rather be in credit than owe them money.
However, if my credit reaches over £100 they automatically send to my bank account a rebate for that amount.
I do keep very careful documentation of my usage over the last few years, and I am happy with service that EDF provide. I like their on-line assistant help service, which I have found easy to use and always get good help.
I have now agreed to have a smart meter in my home in a couple of months time. I do find getting down on my knees to make meter readings increasingly difficult so look forward to not having to do that ever again.
As for monitoring my actual usage - well, I think I know that if I switch on my electric oven there is likely to be surge, etc in my usage - so not sure how useful that will be for me, but I will wait to see.

Mauriherb Sun 29-Apr-18 10:37:55

A few years ago I changed to EON after much discussion and a promise to reduce my bills by £10 A month. Then after a year they sent me a bill for £150 saying that my usage had been higher than anticipated, needless to say I soon changed provider

Crazygrandma2 Sun 29-Apr-18 10:33:05

I transferred to PfP last year and have been impressed with them and I don't impress easily. I read my meters every month and so know exactly how much energy we consume. I've done this for several years so I have lots of data to back up my decision as to which company is using accurate projections of our usage. Whether it's fuel, car insurance, house insurance if the quote is too high then get on the phone and you will no doubt be offered a better deal. I'm paying less for our house insurance and central heating insurance than I did last year. Well worth a free phone call smile

Greciangirl Sun 29-Apr-18 10:28:12

I am also with Ovo and Yes, they want to increase my DD from £70 per month to 90 a month. A bit of an increase.
I am looking to do some comparisons but several other providers are not that much cheaper.
Also, not all energy providers award the Warm home discount which I am entitled to.
I really don’t know what to do for the best now.
I read my own meters, but they say my bill,has been estimated which I’m annoyed about.

Will have to make another phone call I think.

Lilyflower Sun 29-Apr-18 10:27:22

More on EDF....

For the second time EDF have 'estimated' our dual fuel usage (without a proper meter reading, naturally) and found that, in order to make up a projected shortfall we would have incurred by the end of the summer, we need to virtually double our monthly direct debit.

Had my DH not phoned them and argued the toss, pointing out that, with decreased summer usage the likelihood would be that we would actually enter winter with a large credit balance, they would have siphoned the best part of two and half grand out of our account by this time next year.

You really and truly could not make it up. It cannot possibly be an accident and I see from above posts that EDF have tried it on with all or most of its customers.

What about the little old ladies (or men) who cannot argue with a large institution or business over the phone? Or those who do not know how to challenge a dodgy bill? Or those so overwhelmed by work they have not time to spend a morning on the phone?

The 'customer service' that many utilities and businesses offer their customers nowadays is little short of immoral.

Thank goodness for Martin Lewis who recommends we shop around and even has an energy club which emails you when your tariff can be bettered elsewhere.

Jane10 Sun 29-Apr-18 10:01:47

Oh God! Just received the dreaded EDF 'estimated usage for next year' and announcement of impending change to direct debit. For no reason I can think of we're apparently going to use almost double the amount of energy with resultant doubling of direct debit.
I foresee a fraught morning on the phone to EDF tomorrow morning. The only good thing about them is that they have a direct dial phone system for 'vulnerable' people like me. Definition of vulnerable being over 60. Give me strength!

Matelda Sun 29-Apr-18 09:58:09

I really like Ovo. They might not be quite the cheapest for me, but I really feel in control so I'm sticking with them. Every month I read my own meters and submit the readings online. A few days later, Ovo come back and show me exactly what I am using and paying for, with all kinds of graphs about my usage. I have a direct debit which I can move up or down at will if my payments are getting out of line. I have found Ovo staff easy to contact and really helpful if I have a problem.

vickya Sun 29-Apr-18 09:52:00

I change each year when I get what sounds like a better offer from a new company. Just moved to Bulb., I have asked the last 4 companies, so 4 years, for a smart meter and was told they are not rolled out in my area yet. Bulb said middle of 1018, so any time now? The meter will show me what I use, which should be an improvement.

I started shouting gibberish just now when I read about people being pressured to GET the smart meter!

Beattie9 Sat 28-Apr-18 23:46:57

All this chaos and inefficiency in public utilities is not new. I recall many years ago, when we still had the 'Gas Board', an aunt of mine had a problem with her gas fire.

She contacted the local Gas Board who sent an engineer to examine the fire. He concluded that it required some new part or other, which he would order and be fitted in due course. Before he left, he shut-off the gas to the fire and stuck a 'Condemned - do not use' label on it!

A few days later, there was a knock at the door and a bloke from the Gas Board gave my aunt a small cardboard box of parts for the fire. As he started to walk away, she asked if he was going to fit the parts. 'Oh no', came the reply, 'that's a job for a fitter, I'm only delivering the bits!'

A few more days pass and there is another knock at the door. 'Gas Board' says the caller, dressed in motorcycle helmet, gloves and long coat! 'I've come to repair your gas fire; have the parts arrived?' 'Yes', says my aunt who then invites him in.

Off comes the helmet, the gloves and the coat. While my aunt went to make him a cup of tea, he must have opened the box of parts because when my aunt came in from the kitchen with the tea, the fitter was putting his coat, gloves and helmet back on! She asked him if he had done the job already, to which he replied, 'Oh no, they've sent the wrong parts!'

The entire procedure was repeated with another delivery, followed by another fitter who eventually completed the repair.

In all, it took five visits by five different people over a period of nearly three weeks before the fire was working again!

It seems that with the passage of time, very little has changed!

Chewbacca Sat 28-Apr-18 22:17:15

I had been with First Utility for 4 years and was quite happy with their prices and overall service but, when my contract came up for renewal at the beginning of this year, I was offered one price if I agreed to have a Smart Meter installed, and a very much higher price if I didn't. I didnt renew the contract with them; went to Bulb and reduced my monthly payments with no Smart Meter.