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OMG how can we be paying £100 per month but owe £1000 for Gas and Electric

86 replies

icarriedawatermelon2 · 09/06/2012 22:05

Ok, I should have spotted this sooner, but have been paying a standing order of £100 per month for duel fuel. 3 bed terrace, family of 4.
The bill they send always says 'in credit' take no action etc. They never seem to ask for a reading and I can't remember anyone coming to do one.

DH looked at the metre today and compared it to the estimated bill and he thinks it works out to be about £900-1000 under what it should be!

OMG! Panic. Not sure I can quite believe this! I can pay this off in Aug/Sep in full but I don't know what to do as this just can't be right......can it......

feel stupid enough so please be kind :(

OP posts:
dondon33 · 10/06/2012 21:17

The thing with price comparisons is that while todays date may be cheaper to leave one company and go with another, eventually the other company will raise their prices too so you, as a customer will end up paying the same. They all do it, its competitive pricing.
BELIEVE ME- they all promise you the earth. If I had £1 every time a customer came back to my ex company after being lied to from another, I'd be a rich girl.
Its also the hassle of changing supplier- you are lied to as a customer and told your new company will take care of everything- another BIG lie. When your final bill from old company is generated it splits your account, hence producing 2 bills, one of which (e.g the gas bill) is taken from your account with direct debit, but as they only have permission to take one D/D from your account it leaves the other (the electric) outstanding. LOTS of customers do not understand this and I'm not surprised.
So unless you're in a position to pay 2 monthly bills for a while (the old company to finalise it all and of course the new company know roughly what you use monthly so they want a D/D set up from the start) then be careful.
Another thing is the new company must provide reads to the old in order to close down the old account- often they give a higher read so that the older company looks bad and expensive and the new company look cheaper....its BOLLOCKS as the customers next bill reflects this but then its too late and they often cant be arsed with the hassle of changing back again. It doesn't really matter to you as a customer as you've used the exact same energy that has to be paid for, no matter to who IYKWIM but its still sneaky dealings imo.

deste · 10/06/2012 21:36

I can believe it, we pay £162 per month and we owe them nearly £900.00.

dondon33 · 10/06/2012 22:14

My best piece of advice is, don't default direct debits or card payment plans..I said earlier my ex-company policy is 2 fails then its full balance, if you can't then its 75% of that, once its met then we re-set the D/D OR you can chose meters to help yourself as the repayments for what you owe are much lower monthly and done through the meter. There's a huge misconception that meters are more expensive - THEY AREN'T. and can be a way for customers to get out of big debts with their bills while also controlling energy consumption.
Also provide readings from the meters as often as possible. Monthly if you want, ask your energy company for a free fone no to call them in. I always used to get bollocked for giving ours out for the wrong reasons as it was to a different dept but I would tell customers to call it and ask to be transferred :) ...so they shouldn't have 0845 no's should they lol

dolallylass · 10/06/2012 23:11

The exact same thing happened to me and I now owe £1000. Angry My fault for not checking, I heard energy bills were going up but never considered the company wouldn't be keeping an eye on my bill, they know how many people/size house etc. My meters are inside and I work so hadn't been read for an age. They have told me I can pay it back slowly but need to keep an eye on it as the overpayment will be eaten up if my bill goes up. Was stressed when it happened but now see it as interest free credit, rather than paying a lump sum I could be saving and getting interest!Smile

Xmasbaby11 · 10/06/2012 23:13

I can believe it too. We owed 600 at the end of the year. Utilities are so expensive these days.

SkipTheLightFanjango · 10/06/2012 23:17

Bloody hell... we pay £90 a month for gas/electric for a 4 bed detatched..tis cold but have no idea how it could cost as much as some are paying. We are with British Gas, I thought they were pricey!

TheSecondComing · 10/06/2012 23:26

This reply has been deleted

Message withdrawn at poster's request.

Glittertwins · 11/06/2012 12:19

We unplugged all the chargers, turned off modem at night but it made no visible difference in electricity consumption. We rarely use the tumble drier and hang things up in the bathroom instead. A dishwasher is cheaper to use on full loads than running the tap to use the gas boiler to heat sinks of water.
It is obvious when we are all in the house, DH working at home alone or we are all out on the kitchen monitor though.

dondon33 · 11/06/2012 15:54

Its almost impossible for a customer to correctly work out bills themselves (hence why the pricing/tariffs should be more straight forward) it's due to the fact that you don't know the calorific values of the energy supplied needed to work out bills. Each area of the UK is different. I'm trained to use it but it still baffles me. Of course I can use the systems to calculate a bill but still knowing what I know, I wouldn't be able to it manually.

Someone mentioned that if they went "dual fuel" then they would save. For most companies you are correct, the policy for mine was if you take DF and pay thru D/D for 12 consecutive months then you will receive £100 bonus at the end of it...however miss one payment and you won't get it. Also the Tariff for dual fuel is standard...there are better ones to be had if you sign online. There is also tariffs and plans to help vulnerable customers such as with a disability, speak to your suppliers people.

Its a fact that a high % of the population will be in fuel poverty very soon, lots already are :(

Like I already stated, unless you are elderly/disabled and the energy company have this in the system then the responsibility to read the meters is YOURS. Companies, by law, must read/check them once every 2 years. An easier option so that you don't have to keep ringing them in is to sign up for the online service, the company will E-mail you when it wants a read or you can enter when you choose to, like monthly if you wish.

Its easy to build up a high bill if you are not providing reads every 3 months, if say 2 of your quarterly bills were estimated below what you used by £150..... When the energy company finally did get an actual read from the customer you would have £300 for starters then what else you had actually used on top....its not worth leaving it.

And yes some one else mentioned if you are a customer who hasn't had a meter guy out for well OVER 2 years- then the back bill policy can apply, however if a customer could have provided a read (i.e no disability, not recorded on the system as needing the engineer to visit) then it will be very hard to get them to apply it, but you could still ask.

SKIPTHELIGHTFANJANGO - Is that each? If its for both then I would seriously get in touch with BG with reads and get them to verify that you pay enough, so you're not given a big bill later. I've had customers paying double that for the same sized properties, but it depends on how many live there, if you heat all rooms or just the ones you actually use.

Dolallylass - You have it sorted now, Don't worry about how the money is distributed just provide regular reads still so that if you do use more, its caught early and your payment might just need adjusting by a few pounds each month to cover it. Also I'm not saying that you will, but be careful about defaulting the monthly plan as often the energy companies aren't so forgiving that after they stretch terms for repayments they get defaulted and they won't put you back on the same plan as before. If, E.g its your bank at fault then you can provide proof of that and they will help you and quite often set it straight back up again. ALL energy companies are cracking down on the debt thats owed to them, so the rules can be quite harsh sometimes, but if you genuinely need help it's available.

ColinFirthsGirth · 11/06/2012 16:24

We pay £45 for dual fuel each month and we are always in credit. That is for a three bed semi-detached, family of four. So it is possible to get it down to quite a low amount. However, we take our own reading each month and my husband puts it on a spreadsheet on the computer (yeah, he is abit anally retentive!)
This means that we always know what we are using compared to the same time last year or last month etc.

Don't panic though, it is very unlikely they will demand it all at once and will probably put your monthly payments up abit to cover what you are using and to pay off the debt.

dondon33 · 11/06/2012 16:35

Colin- that's a great way to keep on top of it all, hence why your D/D's are low, you won't get a huge debt on your account because of the regular actual reads.

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