First Utility gave me no gas bill for a year and now a huge one!

lb_saint

Hi,

sorry about the length of this ..

I signed up a couple of years ago with one of First Utility's online accounts for joint electricity and gas whereby i entered meter readings online every month and they billed me monthly via a variable direct debit.

All went well at first however for some reason a year ago in May, although I was emailed monthly as usual and asked to enter readings, I started to only get billed for electricity but no gas.

Not being as careful as I should have been checking bills I didn't realise for a few months as I was still getting billed by them for electricity and as it was summer assumed the direct debit going out covered both gas and leccy.

however despite me still religiously entering both leccy and gas readings once a month - I still didn't get billed for gas.

So on Jan 2nd I rang them up - they apologised profusely and supposedly sorted it out. However after 3 months of waiting still no gas bill.

By now I was fed up and switched supplier - during the last few months, first uitlity told me on their bill they didn't supply me with gas - even though I hadn't switched by then!.

So... today I received an email apologising for the 1200 pound bill I had accrued and sadly the direct debit for this amount and gone through their sytem to debit my bank account today !! - but could I ask the bank for an indemnity order ??? to try and get the 1200 credited back to my account then ring first utility to arrange monthly payments to spread the load as they realised it was a large amount. ( understatement)

My question is - what are my rights?

a) I think I may not have to pay any gas usage over a year in arrears? - if so this is 2 weeks worth - roughly 50 quid.

b) when I opened account with them - there was a reduction offered if I regularly entered my meter readings - no sign of this on the bill

c) can I ask for compensation/bill reduction as they broke they're side of the bargain - i.e. didn't bill me regularly despite me entereing readings every month when requested.

d) I cancelled the direct debit online and have been told by my bank (Smile) that first utility wont be getting the money - now I'm worried about debt collection agencies and credit rating agencies blacklisting me - help!! - I'm happy to arrange repayment - is 50 quid a month over 2 years reasonable? but I want to negotiate from a position of strength i.e. knowing my rights on this issue.

Thanks in advance for any help

Cheers
Chris

Cardew

If you didn't get a bill at all for over 12 months, as you say they can only go back 12 months - not much of a help in your case.

They must inform you in advance(10 working days?) of any increase in DD. If they didn't you just claim the money back from your bank under the direct debit guarantee.

However unfortunately they are within their rights to charge you for a full 12 months - that said most companies will offer you a goodwill reduction -especially if you agree to pay it back in a lump sum. If they offer 20% to 30% it would be worth borrowing that sum.

ollski

I always thought that they could bill for 6 years though I'm not sure. Didn't get a gas bill off fu for 6 months then got a large bill to cover it but estmated off the meter they removed and replaced 6 months before. Still getting estimated bills when I changed supplier 14 months later. I just read the meter and put away the cash to cover it.....even fu will catch up sooner or later!

dogshome

Hi l_b saint - As Cardew has advised, the "No back-billing beyond 12 months agreement" is of little use to you as the problem only goes back only just over a year.

However, though you don't say how big your dwelling is and the size of your family, a £1200 bill for one year is hell of a lot of Gas
You have your reported meter readings, so check that bill down to the last penny & Kwh and if you have not had a detailed bill showing the Kwh used over each chargeing period, the dates of those periods and the tariffs that applied at the time, demand that FU issue one before you pay them anything.

Cardew

ollski wrote: »

I always thought that they could bill for 6 years though I'm not sure. Didn't get a gas bill off fu for 6 months then got a large bill to cover it but estmated off the meter they removed and replaced 6 months before. Still getting estimated bills when I changed supplier 14 months later. I just read the meter and put away the cash to cover it.....even fu will catch up sooner or later!

You need to read the Billing Code as applied to your circumstances.

Essentially companies can only back-bill 12 months where they are at fault for not sending bills, or in certain circumstances inaccurate bills.

However that rule doesn't apply if customers have not complied with certain conditions - mainly when moving in to a property and not taking steps to obtain a bill. e.g you can't move in and not contact supplier.

lb_saint

dogshome wrote: »

Hi l_b saint - As Cardew has advised, the "No back-billing beyond 12 months agreement" is of little use to you as the problem only goes back only just over a year.

However, though you don't say how big your dwelling is and the size of your family, a £1200 bill for one year is hell of a lot of Gas
You have your reported meter readings, so check that bill down to the last penny & Kwh and if you have not had a detailed bill showing the Kwh used over each chargeing period, the dates of those periods and the tariffs that applied at the time, demand that FU issue one before you pay them anything.

Thanks - it is a lot but it's a biggish house - 5 bed - with 3 teenagers who like "vertical baths" - despite my calling them showers! - 2 head off to uni - so hopefully this will reduce and we had a particularly cold winter period

lb_saint

Cardew wrote: »

If you didn't get a bill at all for over 12 months, as you say they can only go back 12 months - not much of a help in your case.

They must inform you in advance(10 working days?) of any increase in DD. If they didn't you just claim the money back from your bank under the direct debit guarantee.

However unfortunately they are within their rights to charge you for a full 12 months - that said most companies will offer you a goodwill reduction -especially if you agree to pay it back in a lump sum. If they offer 20% to 30% it would be worth borrowing that sum.

Great idea - I'll try this with them - Cheers

stewie_griffin

Cardew wrote: »

You need to read the Billing Code as applied to your circumstances.

Essentially companies can only back-bill 12 months where they are at fault for not sending bills, or in certain circumstances inaccurate bills.

However that rule doesn't apply if customers have not complied with certain conditions - mainly when moving in to a property and not taking steps to obtain a bill. e.g you can't move in and not contact supplier.

The Billing Code only applies to 5 out of the 'big 6' suppliers since it was a voluntary agreement they set up. Not sure what the likes of First Utility have in place of it if anything.

Cardew

stewie_griffin wrote: »

The Billing Code only applies to 5 out of the 'big 6' suppliers since it was a voluntary agreement they set up. Not sure what the likes of First Utility have in place of it if anything.

Good point - I assumed that all the 'new' companies like OVO. FU etc complied with the code.

poshjock

Cardew wrote: »

Good point - I assumed that all the 'new' companies like OVO. FU etc complied with the code.

Bad news. First Utility are not part of the 'back billing code'.

They have gone over all my bills since 2010 and re billed me. They want over £500!! I have told them they can do one.

I am now in the middle of a case at the ombudman.:(