Meter Readings

King_Weasel · 16 January 2008 at 2:15PM

I don't know whether any of you own a gas or electric supply company, but here's a little ruse for extracting a bit more out of your customers.

When you send out your bill or statement, just lower the meter readings down a bit. Even if they're supposed to be actual readings, they don't have to be taken on the date of the bill. Just make sure you don't lie outright by quoting a reading date in your documentation. Then, after you've put prices up, take as accurate a reading as you can. That way there'll be a few more units to charge at the higher price. It works because customers never take their own readings, do they?

I got this idea from my supplier, Atlantic. Their latest gas and elec statements are supposed to be to 7 January, but their "actual" readings were below those I took myself on 31 December. (I take them every quarter to monitor consumption as well as to keep an eye on my supplier.)

Or am I being unduly cynical?

King Weasel

Cardew · 16 January 2008 at 4:24PM

This has been covered loads of times on MSE e.g. accusations of underestimating meter readings before a imminent price price and overestimating meter readings before a price cut(not that there have been many of those)

IMO you are being unduly cynical.

Given the multi-£million pounds fines handed out to Utility Companies for infringements of the regulations, I wonder what the fine would be for that type of action. It would be conspiracy to defraud and very easily detected; and with the disgruntled employees in these companies, there would bound to be a 'whistle blower'. Those managers responsible would probably get a custodial sentence

By the way,I suppose I should declare an interest in that I am a part owner of some gas and electricity supply companies. I own approx .000000000234% of a large one and rather less of a couple of others.

Terrylw1 · 16 January 2008 at 11:29PM

Well from years of working for 1 of the big 6 I can confirm Cardew's point that any number of the hundreds of people I worked with/for or managed would be very happy to report this! These companies are full of disgruntled employees and the problem with doing this is - everyone can see it!

Billing processes are ongoing daily and staff work against readings and bills to resolve lots of things you as a consumer don't even see. So, it wouldn't take long before it got spotted by those even at the bottom of the chain.

These companies are audited yearly by PriceWaterhouseCoopers on behalf of Elexon and part of that audit relates to readings and how Suppliers use them.

Suppliers have to justify how their systems deal with incoming readings and then how they estimate from there if it is on the audit proposal.

Ofgem's stance on use of meter readings has always been - use a reading from the site or customer close to the date of the bill. However, if the reading is generally a month to 6 weeks outside of the billing date, record it only and don't inconvenience the customer by making them accept amended part quarter bills which many customers cannot understand.

If you have a reading, give it to them and rqeuest your bill be amended. They will oblige as thye are always looking for more accurate reading data.

On Ofgem's site there are lots of documents detailing how they work with all parties about site readings and estimation.

Suppliers also have to have compliance teams who monitor internal depts and report to the highest levels of management to ensure the business is managed inline with industry compliance.

I think you have to remember that the industry was privatised long before all these price increases started appearing so they have not in many cases improved their billing to prevent this.

Some Suppliers bill monthy now which makes this less likely but any Supplier doing this on a 6 monthly basis will always be more prone to overcharging against newer/higher unit prices. Thats just the way it is when you don't get firm readings each quarter. You just accept the risk and have to manage your Supplier more pro-actively, which you appear to have started doing.

P.S. if this did happen, I can declare my interest by stating I would be happy to blow the whistle to the media if they were offering a fee!

King_Weasel · 19 January 2008 at 4:50AM

Thanks Cardew and Terrylw1. Happy to be proved wrong on this.

I still think it's a good idea to take your own readings, as you may do, especially when prices (or your suppliers) change.

Just to update you, I emailed Atlantic with my readings, asking them to note them and (as I pay by monthly direct debit) saying I did not need amended bills.

King Weasel

Meter Readings

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