Is this legal?

nevilley

I saw Martin on the TV today and after hearing him comment on the way prices go up "right now" but come down "end of next month" I came up with a way to play the system. All the numbers I use are made up just to illustrate the point.

Let's say you're billed quarterly for fuel.
If you use 100 units per month at a cost of £1 per unit you will expect your end of quarter bill to show:
300 units @ £1 = £300 (actual reading)
total cost £300

However, what if the price goes up to £1.50 part way through, let's say at the end of the 2nd month.
Then your bill will show
200 units @ £1 = £200 (estimated reading at end of 2nd month)
100 units @ 1.50 = £150 (actual reading)
total cost of £350

However, if you call in a customer reading at the end of month 2 to say you have used 300 units then your bill at the end of the quarter will show:
300 units @ £1 = £300 (customer reading at end of 2nd month)
0 units at £1.50 = £0 (actual reading)
total cost £300 and a saving of £50.

Now what if they tell you the cost is going down by 50p at the end of the 2nd month.
Your bill will show:
200 units @ £1 = £200 (estimated reading at end of 2nd month)
100 units @ £0.5 = £50 (actual reading)
total cost £250
a saving of £50 over the old rate.

but if you phone in a customer reading at the end of the 2nd month to say you have used 100 units then your bill will show:
100 units @ £1 = £100 (customer reading at end of 2nd month)
200 units @ £0.5 = £100 (actual reading)
total cost £200
a saving to you of a further £50.

Now all this is "playing the system".
I don't know if it's legal but it does seem to work.

Of course if you can't make customer readings or you're on a pre-payment meter this won't work.

filmnoir

Its not illegal, however it is lying. Also suppliers will see erroneous consumption like you are suggesting.

For example with the price cuts looming in a months time, it would be beneficial to say that I read the meter the day before the price cuts and knock 200 - 300 units, but when the supplier reads the meter next you'll see erroneous consumption in a warmer period of the year.

Secondly price changes suppliers use their own estimation and are loathe to change it due to mannual rebillings on the account without at least one or two 'good' reads.

Cardew

I beg to disagree with the post above and IMO it is illegal as it is deception. It is your intent to defraud the Utility company.

That said of course it would be impossible to prove any 'intent' as you 'obviously' had merely made a mistake in the reading.

I would add that this 'ploy' has been suggested many times on MSE.

RHYSDAD

Why not just pay for what you've used?

Premier_2

Rather than deliberately deceiving your supplier, you could just let them estimate usage at the price change point.

I know last time when prices increased, I know with one supplier (iirc Atlantic) any customer who contacted them and disputed the estimated reading at price change got automatically rebilled with the whole bill being charged at the pre-increased amount (the difference being so small, the cost of doing so was negligible)

Perhaps this time they'll charge the whole bill at the decreased rate for anyone who disputes it.

The only problem with this is if the policy is abused with everyone phoning up to dispute their estimated readings at price change date, the policy will be reviewed/revoked. It only works when the number of people who complain is small.