Electric underestimated - Do I really have to pay all that?? :-O

[FruitynNutty]

DP, DS and I moved into our 1st property a year and a half ago. This is the first time we've had to pay any bills as we were living with my mum before.

As far as I was concerned, the amount we pay on our utilities was correct. I trusted the direct debits and estimations and assumed it was down to the company to come and check the readings regularly.

However, I had the biggest of my life when I discovered we were over £600 over our overdraft! I nearly passed out, I was shaking like a leaf. I called DP at work who checked our statements and said British Gas had taken out £724! Obviously a mistake - I assumed. So, I phoned them up. Well, to cut a long story short, it wasn't a mistake , they have been underestimating our reading since we moved in Luckily I managed to get an overdraft extension and an indemnity claim to get the money back from the bank[phew]. Now, I have organised a 12 month installments plan with British Gas to pay the money back. I have now discovered we were underestimated by £45 a month! How can they underestimate it by so much? Surely they would have realised something wasn't right? Why dont they send people round more often to check the meter?
I assumed what I was paying was correct, yeas it seemed low but we have gas too so thought that combined the figure was correct.

Surely this is their mistake?

I must admit the reason I wasn't expecting the huge bill is because I got into the habit of just knowing what the amount was going to be as it hadn't changed much since we moved in so I didn't bother to open the bills. I just put them in a folder. I always check my bank statements online so I know what's going out.

Do I really have to pay all this money back? Is it worth phoning the CAB? What about the bank charges I'll get for being overdrawn by so much?

I'm so worried because we're struggling as it is. I dont think we can rustle up the £120 per month (for 12 months) it's going to cost us

Do you get any benefits at all? There is a small charity that can help with utility bills. It is on my work computer - someone here told me about it

www.britishgasenergytrust.org.uk/

HTH. Eve

Thanks I'll have a look. No, not on any benefits, except child benefit.

Work out how much you CAN afford to pay and get back on the phone to them.

We had similar a couple of years ago with Powergen and they were demanding ridiculous amounts, then threatening to put a meter in (which we would have had to pay more than we could afford each week) - after a 45 minute phone call were I point blank refused to get off the phone "so they could call me back" I was put through to someone from the credit department (much nicer than the people that you talk to the rest of the time LOL). Told her exatly how much we could afford to pay, and said quite categorically that if they demanded more they wouldn't get it as the money simply wasn't available.

She was very good, she set up the new payment plan (took a lot longer than they really wanted us to pay it back by), made sure I was sent details in the post, and even gave me her name and the direct number through to her department if we had any more trouble.

Oh and one more thing, make sure you open the bills in future

You have to pay it, its not their fault. An estimation is just that, an estimate. Youdont open your bills and its their fault you are now behind??

It usually states somewhere on the paperwork to ring with a meter reading if the bill was estimated.

They have agreed to 12 monthly instalments which is a good repayment period. If you agreed to the ddm in the first instance you dont qualify for a refund of bank charges as they only took out the payment as agreed.

we had one of these a couple of years ago

£2,500 iirc

Happy is right

it is your responsibility to make sure that the estimate is not way out

you can't stuff all your bills in a drawer

you are responsible to make sure the meter readings are correct on your bill by double checking and to update it if they only estimate. You can update meter readings online with them. we now pay our bills quarterly, so we make sure we put some money away to cover a big bill every 3 months, I don't let them near my bank account ever!

Well I wish someone had left us an instruction book when we moved!
The reason I didn't open the bills was because the same amount was coming out every month so I didn't see the point. I look at my statements online all the time so I can see exactly what's coming out.
When we moved we had one of those awful pay as you go meter things for our gas. This cost us an absolute fortune so combining that with our electric every month seemed like about the right amount. Never thought to query it. Just assumed this was how much it cost.
I cant believe how much it actually costs to supply electric to a tiny 2 bed one floor flat I just didn't realise people paid this much! I suppose people don't really tell you how much they pay so how was I to know what we were paying wasn't correct?

How come the gas/electric companies don't have people to read our meters regularly? Surely we are paying enough for this? If they want our money then it should be their responsibility to get the amount correct? Surely an estimation shouldn't be so wrong? If you estimate something then your giving a rough idea?
I dont know, like I said, I'm new at all this, I've certainly learned my lesson! NEVER trust and estimation!

Sorry and welcome to the real world. Any time you get an electric bill you must open it and cjheck the reading.

The bills dont ust confirm the direct debit amount, they also show the balance - ie whether you are in credit, in the red or balancing each month.

If you had opened them and spotted that they were underestimating earlier the amount would not have been so large.

You are using the power, they just supply it so yes you have a responsibility to read the meter and supply a reading.

An estimate is just a guide, depends on lots of factors - ie if you like a hot house, spend the day at home or work, have lots of electrical items etc. They are not mind readers when doing an estimate.

Cant understand why you are so mad over this, you didnt open the bills but its their fault?

HMOO is quite right in saying that your regular monthly payments were based on the power company's estimate of what your consumption might be. Powergen never guaranteed that the amount would be accurate.

It's just an estimate. Powergen wouldn't know how much you would use. How could they know? Often in a new house or flat you don't know yourself (because of having different boiler, windows, insulation etc from the previous abode).

Your role is to check the quarterly bills against the meter reading and let Powergen know if it's out of step so that they can increase or decrease the monthly payments accordingly.

Horrible shock though when it is such a large amount.

Sorry not quite sure from the thread - did they come (or attempt to) and read the meters within a 12 month period? We moved from rental and were left with a Bill for about £500 which was due to low estimates - it was British Gas (I am pretty sure) after some wrangling they accepted that they should have read the meter at some point during the year and offered me 10% reduction as compensation - better than nothing - you should have read the bills (I should have read my meter!) but they do have some duty of care and if they haven't come to the house in this time might be worth seeking some relief.

Thanks guys.

I suppose we all have to learn the hard way.

It was just such a shock and people I know in RL who I've told think it's British Gas' fault so I thought I'd be able to get some help.
I agree I should've read the invoices from British Gas but as I had the same amount going out every month I kind of accepted that it wouldn't change much. Also when adding electricity up with the gas payments I thought I was paying over the odds anyway so if anything assumed I was paying too much but didn't really think much of it, just assumed that was the cost.

I'm lucky they are spreading the payment over 12 months, although they wouldn't have received it any quicker as there would have been no way I could have paid them.

I'm in the process of trying to cancel other direct debits which we don't rely on such as Sky and the house phone/broadband. I tried to cancel my Gym membership today but it turns out I'm on a 12 month contract so have to write to head office. Why is everything so bloomin difficult! Also gonna sell a load of things to make some money. At least after we've cut down we should be able to pay the installments. Onwards and upwards eh!

Thanks for all your replies

Have they actually been to read the meter as it sounds like a lot for a 2 bed flat?

This happens a lot with direct debits. We started getting the meter read and pay quarterly as they totally f*cked up our payments by under estimating - without telling us!

yep geordieminx In fact I read it to them over the phone to check their figures were correct.

monkeytrousers I thought they hadn't told us either, until I discovered the invoice . In fact, it was opened! I obviously opened it, got distracted and shoved it straight in my file!

It works out that I should have paid £60 per month, just for the electric. The gas is £25 per month - I hope they haven't underestimated that as well! Do you think it seems a lot for a 2 bed flat?
That would work out as £85 per month. I am in for half the day though as I'm a childminder, plus I use the dryer quite a lot (had no idea how much leccy that uses!). I tell you, we'll all be living in the dark at this rate!

I'd check your gas, £25 a month I would imagine is too low. Our gas last quarter was £298!

I only use my tumble dryer when I really have to because they eat electricity.

I must say I get really annoyed with the "it's their responsibility, not mine" mentality . Did it never occur to you to look at the meter?

It might be worth you checking your gas bills against your meter at this point...

yes yes evenhope I've since discovered this and No it didn't occur to me as I was living with my mum before and haven't had to pay utilities till we got our own place, unfortunately we weren't given an instruction book with our 1st place of our own!

go to moneysavingexpert.com and check out the site comparison websites they recommend on their and check you are on the best electricity tariff for your usage. We have a 3 bed terraced house and our gas & electric is only about £50 per month combined. Make sure you unplug things rather than leave them on standby, reduce your ironing, cook in bulk etc etc all these little things can make a difference to your engergy consumption.

Thank you cargirl that's the kind of advise I need

Can you see about getting switched from a gas meter too - if you are a tenant you may have to ask the landlord's permission. Are the meter readings from when you moved in correct?

Just a note but with prices due to go up it's supposed to be worth going on a fixed rate - this works out as 10% more than at the mo but will very likely help come the big proce inflation.

I had the meter changed to a normal one a couple of months ago so my gas is cheaper than before.
Monkeytrousers yes, we're going to try and get a capped rate elec/gas. Prices are supposed to be going up by 50%

Sorry you are paying for your naivety. However utilities are only obliged to read the meter about once a year, if that, and it is up to you to check that the estimated statements match the actual reading. The previous occupant could have had a very different pattern of usage but that is what the computer would have based its estimates on.