Southern Elec. underestimated readings = paying more across price rise period

robskillz · 10 February 2006 at 12:39PM

My quarterly Gas and Electricity bills came yesterday, both are provided by Southern Electric. They had a price rise on 1st January and have split the bills into before Jan 1st and after. They have spread the units used across the two periods charging the old rate and new higher rate for them respectively. Fair enough.

However, both bills have estimated readings which are seriously UNDER-estimated. What's the problem with this? Well when the readings eventually catch up and are accurate on the next bill the shortfall will be billed at the new, higher rate despite the fact some of those units would have been used before 1st January and should in fairness be billed at the lower rate.

So it is in my interest to put as much usage into the pre-1st Jan period. I have taken my own meter readings and phoned them through to Southern Electric (0800 automated service, but if you start it then don't enter your account no. when prompted they put you through to an operator) who are now sending out revised bills - for nearly 300 units gas not their estimated 130! That means I will pay 1.69p for each of about 100 units, not 1.92p, saving me a MASSIVE (not) 23p on gas alone! There is a similar result for my electricity bill. However, it now means my current bill has doubled and maybe the amount of interest I would have earned on having the money in my bank account would offset the gains on paying less for the fuel...

Still, you can see how if Southern Electric can skew this for all their customers they could make a lot of money for themselves for doing not a lot!

Rob

oldwiring · 11 February 2006 at 12:50PM

Sorry, I think one has to be realistic and acknowledge that any estimate will be made from known data, however sophisticated that estimate is. If it is based on average consumption without consideration of seasonal variations then it will clearly understimate the consumption for a winter quarter, and even those that allow for such variations can be caught out by a harsh weather period. Good on you for keeping your own records so that you could speak to SSE with some authority.