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Understanding Energy Bills Discussion

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Understanding Energy Bills guide

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  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Recently had my bill with all the extra info on.

    It told me that I could save 5% by paying monthly by DD - wrong! (I'm with Ebico)

    It also estimated my annual consumption would be barely more than last quarter's bill alone - I wish!
    Even taking account usage over the past 2 years which the bill suggested, my estimated annual usage is supposed to be less than half of what I have used in the last 2 years.

    Still, the bill is now double the amount of pages, meaning double the amount of trees cut down, which should result in climate warming which I suppose might mean lower bills in the future ... but if that's the case why are they bothering with wind farms?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • keynet
    keynet Posts: 3 Newbie
    edited 20 July 2010 at 8:41PM
    I had a discussion with BG this week as my elec bill /statement showed that although my direct debits were covering 96% of the bill over the last year (not bad eh?), they wanted (er, had decided) to increase my DD by 26%! They couldn't explain, until I pointed out that their own estimates of predicted/current kWh usage were within 4% and using these numbers there was either massive bill programming error or a huge price hike coming up.

    There's a whole lot of hogwash on the statement about different seasons, household appliances, how many people in the house... NOTHING on the bill said "It's bleedin obvious - it's because your websaver 3 will expire in July, and we're going to revert you to std tariff". That was the reason. And, on close cross-examination, there's a lockin, so I'd be hit with charges if I changed tariff before 1st August.

    Well, I haven't got my annual statement yet, so perhaps it would all be clear in there.

    The moral is beware these wretched tariffs that revert just like savings rates with introductory incentives. And put the exact expiry dates in your diary when you sign up for a new tariff.
    Martin - some more campaigning needed here... and a warning that there's no warning of unwanted, enforced tariff switches on your bills. Perhaps there is on the annual statement...

    ...some time later... Now it's 20th July and I have an email telling me the Websaver 3 is ending at the end of the month, that's helpful. Not so helpful however is
    "We will automatically transfer you on to our standard gas and electricity tariff so you don’t need to do anything..." (er but pay extra 26% ??). They also offer "Energysmart" (which is a pretty poor deal actually), and no annual statement on view yet. Websaver 8 is their best now, sadly significantly off the mark, Time to bin them off...
  • Cardew
    Cardew Posts: 29,048 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Agree totally with the post above.

    The information on these bills is computer generated and, unless you have a good understanding of Utility company tariffs and bills, can be misleading; which rather defeats the objective.
  • undaunted
    undaunted Posts: 1,870 Forumite
    The cynical amongst us may feel that it's an effort by Ofgem to do / at least appear to be doing something useful & in the customers best interests without actually ever doing so.

    I can't see anything on the examples that would really tell me / anyone anything new & particularly helpful :(

    As for contracts automatically rolling on etc I don't believe that should be allowed at all. As per your car insurance for example it should be for the issuer to provide a renewal quote & you to then accept or reject & go elsewhere on agreed terms

    Personally I reckon "Cameron & Co." ought to be looking at Consumer Direct (basically just a call centre), Ofgem etc as part of their efficiency drive & replacing them with something that actually works in :p.
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    1,000 Posts Combo Breaker
    What does kwH mean?

    MSE's explanation: energy bills still only communicate usage in kilo watts per hour and unless you're a physicist it can look like double Dutch.

    This is unlike phone bills where you can clearly see the price per minute and relate it to how much you're using.

    You haven't explained what the difference is, either. And you did not spell 'kWh' correctly.

    And if a householder is confused by the terms 'debit' and 'credit' as used on fuel bills then there is no point trying to explain anything. That is not a serious point, is it?
  • anniecave
    anniecave Posts: 2,460 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It still won't do anything for all the people who don't read their bills anyway, just look at the numbers and get baffled by all the different figures.

    Some basic terminology and explanation is needed, for example why do some tariffs have two sets of units (primary and secondary) whereas others have standing charge and just one set? Answer they are just equivalent to each other.
    Also explanation of how a gas bill is made up
    Indecision is the key to flexibility :)
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Premier wrote: »
    Recently had my bill with all the extra info on.

    It told me that I could save 5% by paying monthly by DD - wrong! (I'm with Ebico)

    It also estimated my annual consumption would be barely more than last quarter's bill alone - I wish!
    Even taking account usage over the past 2 years which the bill suggested, my estimated annual usage is supposed to be less than half of what I have used in the last 2 years.

    Still, the bill is now double the amount of pages, meaning double the amount of trees cut down, which should result in climate warming which I suppose might mean lower bills in the future ... but if that's the case why are they bothering with wind farms?

    Just an update on this situation.

    Originally contacted Ebico who responded saying that the suggestion of a 5% discount for paying by direct debit was indeed misleading and that they hoped to get SSE to change their customer bills to prevent this misleading information being distributed in future.

    With regards to my specific account and estimated annual usage, apparently Ebico as my supplier are not able to access my account for data protection reasons :eek:

    I was told to contact their billing partners, SSE who have the necessary access. I have now received a response from SSE that confirms my estimated annual usage is over 10% understated (and thats even after averaging over 2 years), blaming their computer system for the error ... and one they don't seem to be planning on fixing any time soon.

    What use is this information if it is not accurate? A different annual usage will affect any price comparison.

    Bearing in mind, SSE are usually considered one of the better companies as far as customer service is concerned, I wonder how accurate other suppliers estimates will be for their customers?

    Oh, and SSE contacted me today trying to get me to agree to paying monthly by DD, using the 5% discount as an enticement... even though I won't ever get it even if I agreed to paying that way.

    Is there anyone enforcing the application of these new Ofgem rules, and any way customers can report when the information being provided to them by their supplier is downright misleading?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • bargepole
    bargepole Posts: 3,236 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    anniecave wrote: »
    ... Some basic terminology and explanation is needed, for example why do some tariffs have two sets of units (primary and secondary) whereas others have standing charge and just one set? Answer they are just equivalent to each other.
    Also explanation of how a gas bill is made up

    The "standing charge" on some tariffs is a legacy from the pre-privatisation days, when the gas board charged you a fixed quarterly rate for the meter + supply, which you had to pay even if you used no gas, and then a price per unit for the gas used.

    Most companies now offer tariffs with no standing charge, and have a primary rate for the first X units per quarter, then it drops down to a lower rate for the rest of the units. The number X can vary from one supplier to the next, so take that into account when doing comparisons.

    I have been providing assistance, including Lay Representation at Court hearings (current score: won 57, lost 14), to defendants in parking cases for over 5 years. I have an LLB (Hons) degree, and have a Graduate Diploma in Civil Litigation from CILEx. However, any advice given on these forums by me is NOT formal legal advice, and I accept no liability for its accuracy.
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    Premier wrote: »
    ...
    I was told to contact their billing partners, SSE who have the necessary access. I have now received a response from SSE that confirms my estimated annual usage is over 10% understated (and thats even after averaging over 2 years), blaming their computer system for the error ... and one they don't seem to be planning on fixing any time soon....
    Just a quick update.

    SSE have now confirmed to me in writing that the information produced by their computer regarding anticipated annual usage as required by latest Ofgem regulations is currently inaccurate and misleading.

    They are working to try and correct this, and hopefully will have things corrected by the next bill ... we can only hope. :)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    edited 4 August 2010 at 10:49AM
    It looks like these new energy statements have attracted the attention of Consumer Focus.
    New annual energy statements are likely to confuse the customers of some gas and electricity suppliers, the campaign group Consumer Focus has warned...

    The regulator Ofgem agrees with Consumer Focus that some companies may be following the new guidelines to the letter, but not adopting the spirit in which they were intended. It is asking for improvements...
    Read the full article here: http://www.bbc.co.uk/news/uk-10847420

    SSE (and nPower) are particularly highlighted as companies where the statements produced are judged as 'poor'.

    The ERA who represents the suppliers said the statements are a "work in progress".

    Edit: to be fair, I note that SSE have already removed the misleading indication of a 5% discount to Ebico customers if they pay monthly by DD from their statements. :)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
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