£4000 backdated electricity bill, please help

notatvstar

... semantics aside, I'm in a similar position. We had a faulty meter and it as replaced this time last year. I have to admit, me and the OH were lazy and did not submit meter readings as we were happy to go with the estimated readings (they also 'seemed' more than what we saw) and we reasoned the estimates were over estimates. We were happy to overpay, as we reasoned, as and when the leccy company wanted to have a real reading we would get a reduced bill. The new meter was a new model and so it could be that we were reading it wrong.

Anyway - the day of reckoning came and we were asked to give a real reading. I gave the numbers on the electronic dial... then the company asked if there was a decimal point on the readout...

b*ll*cks.

It's a years worth of electricity.

... They're sending over a man to read the meter for us - in case we've read it wrong and/or that meter is faulty too.

I'm going on the worst possible case scenario, as this tends to happen to me as far as money is concerned.

I'm not sure if I can clear the amount outright - I have some savings, but I have a tax bill I need to pay (haven't submitted tax return yet - I think I have until October - but I like to have it in the bank so I can pay immediately). I haven't been in the position before so I'm not sure if I will be allowed to pay any back-dated money in installments. I got the company to give me a 'worst possible scenario guesstimation' for the money outstanding and it's 'doable' but probably not in a 'oner'. It'll be probably just under a grand (as they'll take off what we've already paid). Like I said - doable, but not all at once. Beans on toast for tea methinks!

What are people's experiences in these situations?

PS - please don't internet spank me for not reading my meter regularly... it's supposed to be the job of the OH and I can't and won't do everything! Incidentally - we don't use a lot of leccy... we've got power saving devices left right and centre etc etc...

Cardew

notatvstar wrote: »

... I haven't been in the position before so I'm not sure if I will be allowed to pay any back-dated money in installments.

It is normal for a Utility company to allow you to pay off the arrears over the same period as the debit balance built up - a year in your case?

Don't forget that, if there has been a price rise in that year, you should be billed for some units at the pre-increase price(the point I was making in the OP's case)

Given the above points, many companies will reduce the outstanding balance by a sizeable amount(20%-25%?) for a cash payment to clear the arrears; so worth negotiating! The managers in the accounts centre have a fair amount of discretion.

notatvstar

Cardew wrote: »

It is normal for a Utility company to allow you to pay off the arrears over the same period as the debit balance built up - a year in your case?

Don't forget that, if there has been a price rise in that year, you should be billed for some units at the pre-increase price(the point I was making in the OP's case)

Given the above points, many companies will reduce the outstanding balance by a sizeable amount(20%-25%?) for a cash payment to clear the arrears; so worth negotiating! The managers in the accounts centre have a fair amount of discretion.

These points are GREAT to know... many thanks

N

spiro

So that you all know, when you submit a elec meter reading to your supplier they send it on to the Data Collector (company that employs the meter readers) who then validates the readings using your historical consumption, 'estimated annual consumption' and consumption 'profile' amongst other things. If it passes this validation it is sent back to the supplier as 'validated and valid' for use on bills. If it fails it will be sent back as 'validated and invalid' and they will 'deem' (estimate) a meter reading which they also send back. It is the estimated reading that is then used to bill. Given that a supplier only has to read the meter every 2 years then these rejected 'customer own reads' are not an issue for the supplier BUT if this happens to you then when you get your bill you should be phoning your supplier and saying 'why have you not used the reading I submitted'.

This not only applies to the poster of this thread but to everyone.

Former_E.ON_Company_Representative:_Malc

Martyj wrote: »

Hi all, this is my first post, i hope someone can advise and help me:

I received a bill of just under £4000 this morning from e o n , it is for consumption dating back to september 2009. I have been paying my bills on demand, never late for this period (since i moved into the house), the meter readers have been coming regularly and read the meter no problem. However it seems all the bills have been raised from estimated readings ( my bills have been between £100 and £400 which seemed about right ) . I phoned the electricity company and they told me they had all the physically read meter readings but 'the computer' had rejected them as they didnt tally with historic readings, hence they tell me i have been underpaying for 2 years. I'm told the new £4000 bill is from actual readings but even so it seems pretty large! Especially considering i live on my own and am pretty conscious of my electricity usage!

Can anyone offer any advice? Its a crippling figure and im rather worried.
Thanks

Hi Martyj

I agree with Jalexa, this certainly needs a full investigation. It's important to find out why actual meter readings were rejected and estimates used for almost 2 years.

Contact our Director's Office and raise a complaint - their details are on your bills. An individual agent will take ownership of the complaint and deal directly with you, escalating to senior management if necessary.

Under the Billing Code, if we're at fault, we will not charge for electricity used more than 12 months prior to the date the account was corrected. Ask if the code applies.

As cardew says, make sure we've re-billed using prices current at the time the electricity was used. There's no way you should be paying for electricity used almost 2 years ago at today's prices.

If, after 56 days, you're unhappy with the resolution proposed, you can take the case to the Ombudsman for an independent ruling.

Should it turn out there's an outstanding balance, we'll be happy to set up a payment arrangement to spread the amount over a manageable period; usually a similar time it took us to sort the issue out.

Just a heads up; before you contact us, take a note of your meter serial number and the latest readings. Make sure the number on the meter matches the one we're charging to on your bills.

Hope this helps point you in the right direction Martyj. Give me a shout if you need any more info as will be happy to help.

Malc