Save money by playing power companies at their own game

Networkguy

We all know that most gas and electric meter readings these days are estimates.

For many years I was amazed how British Gas used to get their estimates very close to the real reading however that stopped happening a few years ago.

So for those that remember, for a while, the estimated readings were always quite high. As such, if you just paid them, you ended up with the power company owing you money. This used to be common and there were stories in the media of how people had received huge refunds when the real reading was factored in.

Of course this worked for the power companies because it meant that they got your cash sooner.

But having spoken with a number of people, it would appear that something has changed. In the last year or so, suddenly, everybody I can find is telling me that their estimated readings are UNDER the real number. This ends up with you owning the power company money.

But here is the sting.

With energy costs going up at such a huge rate, when you do come to pay the correct amount of cash to the power company when you give them a real reading or when they can be bothered to actually read the meter, you are paying for those units of energy at the current pence per unit cost which will be significantly higher than the pence per unit cost at the time you probably consumed the energy.

So by under estimating, the power companies win in the end becuse they get to charge you todays rates for energy you used a year ago!!!

But I think I have worked out how to beat them at their own game and even save money. This assumes that energy costs will not fall.

When the power company sends you a bill with an estimated reading of say 1000 units and you have actually used 1200 units, what you could do is give them the new reading and pay for the 1200 units.

On the other hand you could give them a customer reading of say 1500 units and of course they will just send you a new bill based on that number. You will notice that by doing this, you have just paid for 300 units that you have not yet used.

But of course you have paid for these units at todays prices and not the cost they will be in say 3 months time when you actually use them.

In effect you are pre paying your electricity at current rates to avoid paying for it at future rates.

So with 40% increases in fuel bills quoted, there are some serious savings to be had here.

Of course there is the risk that costs will come down but some how I doubt that and of course you need to have the cash to hand to be able to do this however you should be able to do this even if you pay monthly.

Now there is the question on this being ethical however as it would appear that the power companies did this to me or many years, what goes around comes around so it sound like fair game to me :beer:

Cardew

This subject must have been covered a dozen times on MSE; so it is hardly original thought!!

Firstly, most of the estimates are made by a computer. Now if your contention is correct(i.e. estimated readings have changed from being over-estimates to under-estimates - based on the evidence of you speaking to a number of people) then whoever has programed the computer(in every company) is guilty of conspiracy to defraud and each of them would face a jail sentence as well as the company being fined multi £millions.

Now would each computer programmer in every company have done that using their own initiative, or would every Utility Company management have directed them to carry out the fraud?

Do you not feel that a 'whistle blower' might just expose such a serious criminal practice? - plenty of disgruntled employees!

A knowledable employee of a Utilty company posted on here about the checks that the Regulator carries out on the computer algorith for estimated readings; but that doesn't fit in with your conspiracy theory I suppose.

Your suggestion that people defraud the Utility company 'in revenge' for the injustices suffered has also been frequently suggested.

If you feel that is OK - then go for it; you will probably get away with it if you are not too greedy.( I pass no moral judgement!!)

However I suggest is just a little disingenuous to try to justify it with such excuses!

glasgow_DFW

Estimate is another word for guess. The energy companies have been doing it for years: and they would have told you on each and every statement that is was an estimate (guess) . When it is an over estimate straight on the phone ‘what you playing at blah blah blah’ but when underestimated ‘wooohoooo a wee cheap bill and I get to save a wee bit’

A way to avoid both these situations read your meter and give the reading if you get and estimated bill. Even if the reading is close to your actual reading give the actual ‘cueas if it continues to estimate you could pay more of less for what you actually using

1carminestocky

Estimates HAVE moved downwards IMO. And the REAL reason IMO is to get punters to accrue a large-ish debit balance so they can't go elsewhere - it's the energy company's 'secret' fightback against 'churn'.

glasgow_DFW

That makes no sense, at all.

It’s an estimate, a guess. You’re told this on the document you receive in the post/ on line. You can then correct it by providing your correct reading. If you’re running up ‘Hundreds’ of £ outstanding balance with them because of estimates. The customer has to accept complicity in that building up. They get the bill they see is an estimate and do nothing about it.

So how is this nasty money-crabbing scheme blown right out of the water? Take 10 seconds of responsibility for yourself and READING your meter to confirm that you are being billed correctly.

OOH the effort.

Networkguy

Cardew wrote: »

This subject must have been covered a dozen times on MSE; so it is hardly original thought!!

I did have a look around and did not find any other discussions on the subject but if you say so.

Firstly, most of the estimates are made by a computer. Now if your contention is correct(i.e. estimated readings have changed from being over-estimates to under-estimates - based on the evidence of you speaking to a number of people) then whoever has programed the computer(in every company) is guilty of conspiracy to defraud and each of them would face a jail sentence as well as the company being fined multi £millions.

Of course.

The power companies have never tried it on have they in the interests of profit?

If you feel that is OK - then go for it; you will probably get away with it if you are not too greedy.( I pass no moral judgement!!)

However I suggest is just a little disingenuous to try to justify it with such excuses!

Your comments and opinion are noted. Thanks.

But of course with these huge rises that are "out of the power companies hands" that are "down to global market forces" forgive me if i view any energy company with contempt as they then go on to post huge profits at the same time.

freddysmith

I would have thought the computers can tell if readings are under or over normal usage pattern for each customer and flag it up for a visit by one of the meter readers or inspectors to clarify. If you got greedy then it would be obvious to the utility company and if proven ask for the difference back from you.

Cardew

Networkguy wrote: »

The power companies have never tried it on have they in the interests of profit?

Your comments and opinion are noted. Thanks.

But of course with these huge rises that are "out of the power companies hands" that are "down to global market forces" forgive me if i view any energy company with contempt as they then go on to post huge profits at the same time.

I am not defending Utility companies, they are in it for the profit and if they could get away any sharp practice they would. You may view companies that make big profits with contempt , but in a Capitalist society that is what all companies strive to achieve.

However they don't need to resort to fraud. When Maggie sold off the Family Silver(as Macmillan famously stated) in the 1980s she gave the Utility companies a licence to print money.

That said, it is the production side of the industry that produces the huge profits and not the distribution side.

If world prices for energy are high, a UK firm is not going to sell it to the UK any cheaper. In any case the UK pay less for their gas/electricity than most European countries.

amcluesent

Sending in your own over-reading and paying would be especially good before switching to a price-protected tariff which are invariably higher. I doubt a value of of 30% over actual would trigger any issues so long as you didn't answer the door to one of their own meter readers!