British Gas sending debt collection letters on estimate bills

froggy_girl128

British gas are sending debt collectors letters out on bills that are estimates and have only not been payed because people want a real quote

are they allowed to do this?

Cardew

The Regulators for gas/electricity/water industry allow all the utility companies to send out bills on estimated meter readings. So these are valid bills.

It isn't compulsory for you to have gas/electricty/water supplied to your property and you can ask to be cut off if you wish. However if you contract with a company for them to supply these, isn't it reasonable that you should abide by the conditions of the contract?

The bills do explain(albeit often in small print) that if you don't agree with the estimated reading you can phone/write/email the correct reading and get a revised bill. So if people want a "real quote"(a bill based on actual readings) it is very easy to get one.

What you can't do, is just ignore a valid bill.

There are reasons why meter readings are estimated. Cannot gain access to read the meter is one and another is to save costs.

If we could refuse to pay a valid bill simply because it was based on an estimated reading, it would be pretty easy never to allow a meter to be read and refuse to send in your own reading.

If meters were read religiously every quarter(which might mean the meter reader attempting several times to enter a property) it would increase the costs a great deal and all customers would pay the increased costs.

tomstickland

I'm having a lot of hassle with Npower at the moment and an unpaid estimated bill. I've been trying to get British Crap to put their dispute process through. I've received conflicting information from N!!!!!!!! each time I phone them up.

Anyway the NPower telephone person actually told me told me today that I shouldn't worry since my bill (£25) is too small for them to bother chasing up properly.

I'm happy to pay the correct bill, but it seems to be equivalent to turning water into wine to get the systems to work properly.

jonnyw_2

Im not sure it would cause such problems if meters were read every quarter. I would say you could do an average of 4 an hour. So if the meter reader was on £10 an hour that would be £2.50 a quarter.

Particularly the case since on new houses the meters are on the outside.

Then look at the threads on this forum. What percentage of them arise in reality from the estimating process being the norm? Probably well above half.

You would probably be able to halve your call centre staff, and more than halve your staff wasting their time on complaints procedures.

I think the reason why the electricity and gas companies work on estimates not actual readings is for some other reason.

oldwiring

The HMRC can sue for unpaid tax liabilities on an estimate, but I had always been told that no other organisation could. The debt had to be for a quantified amount owed. OK the util cos send round debt collectors, but whther they could go to court ?

Cardew

The HMRC can sue for unpaid tax liabilities on an estimate, but I had always been told that no other organisation could. The debt had to be for a quantified amount owed. OK the util cos send round debt collectors, but whther they could go to court ?

As said above, it isn't mandatory to have gas/electricity/water. You have a contract with those companies supplying and have to abide by the conditions of the contract - which allow estimated bills. Therefore it is a civil matter and will be dealt with in the same way as any company with a financial claim.

Obviously they are not likely to succeed in court if the customer has taken steps to dispute the estimated bill.

However the OPs question asked was it legal, and as it is in the terms and conditions, I believe it clearly is legal.

oldwiring

I take that as legal to persue on the basis of an eatimated bill but not to the point of suing. As I recall the bailiff would go with a Collector to collect estimated PAYE from employers but the IR was one of the few bodies able to sue. I am not questioning the legality of the util cos actions as far as they have gone. I never said I was!

humfer

I'm sure they have to take at least 2 readings a year don't they? Otherwise I think you can complain/query the bills accuracy. Will they let you give customer readings and amend the bills?

Cardew

humfer wrote:

I'm sure they have to take at least 2 readings a year don't they?

No.


There are many cases where the meter reader cannot gain access to the property. A holiday cottage for instance that you may only visit on the odd weekend.

Cardew

oldwiring wrote:

I take that as legal to persue on the basis of an eatimated bill but not to the point of suing. As I recall the bailiff would go with a Collector to collect estimated PAYE from employers but the IR was one of the few bodies able to sue.

No I don't think that statement is correct.

It is no different to any other company/person with a Civil claim.

A utility company(or any other company) claims you owe them money.

They apply for a court order, present their evidence, and an order is granted (or refused). You obviously have the opportunity to dispute the claim.

If an order is granted, and you do not pay in the stipulated time, then baliffs get involved.

Before any court action, the Debt collection agencies have no power - they merely try 'persuation'.

However we are getting away from the OP's question. The answer to that is an estimated bill is valid and if not paid(or disputed) can be treated like any other unpaid bill.

jonnyw_2

If they sue and you dont defend they get judgement.

You couldnt just say in defense they are suing on an estimate and simply not agree it. You would have to give the actual reading. The net result would be judgement for the right amount.

You would still end up paying interest and court fees, unless eg. you tried to give the right figures and the utility company refused to act on them.