Incorrectly billed - now they want it all back!

Hockayak

I am in need of some advice from people in the know. Its a long story really. We have been gas and elec customers of one of the big companies for a long time. We have always paid by standing order, no issues really, money came in, quarterly bill went out. Until just over a year ago. We have continued to get the bill, saying that they will take the quarterly amount on a specific day of that month etc. Why wouldn’t I trust this, they have always taken the money on time? - for years.

12 months or so ago, this went wrong at their end, we still received the quarterly letters and were told the amount and date as normal but the money was never taken for what is now 5 quarters! We have been getting in touch with them over the last year to give them up to date readings for the meters as we thought they were over-estimating the amounts. They never said that we owed, as I said we assumed that the money was going out as normal.

It turns out that they have made a mistake with their bill collection via the standing order and are now wanting all of the back payments. i.e. £1200+. They have offered for us to pay it off over the next year but still! This is a lot of money. We have just got back from a major holiday and wouldn’t have gone if we couldn’t have afforded it. Now we are all spent up and a big bill to pay!

Are we obligated to pay the entire amount? I have whittled the amount down to 75% but still, that’s over £1000 to pay off over the next year alongside the actual quarterly bills for next year. I explained to the representative that this would mean us cutting out all luxuries for next year.

I have spoken to their representative and their manager (who offered me the reduced amount to pay), I will soon be contacted by that managers manager. Am I out of line to follow this up? What do I need to say/do? They said it is partly my fault as we haven't checked our account, but as I said they have always taken the money with no issues, and have continued to send the letters stating when they will take the money each quarter. Why wouldn't i trust them to continue taking a long established standing order payment?

Please help, kindest regards to all contributors. Hockayak

giraffe69

You used the electricity and gas, you apparently don't check your bank statements so whilst it is a touch careless of the supplier it seems to me that they have given you a 25% discount and allowed you to pay over time. I think that's a result.

McKneff

They could have claimed the whole lot, no question about it, youve used the commodity, Grab the 25% discount, and be grateful.

Your holiday is irrelevant,

If you dont pay it, they will pursue for it, through the courts, your credit will be trashed with a CCJ for the next six years.

jalexa

Hockayak wrote: »

We have always paid by standing order, no issues really, money came in, quarterly bill went out. Until just over a year ago. We have continued to get the bill, saying that they will take the quarterly amount on a specific day of that month etc.

Hang on. You lost me slightly. The causal issue is when standing orders stopped , or do you mean direct debits.?

You need to clarify that before the "legalities" can be considered.

Whether I agree with the exact sentiments of other posters depends on your answer.

Hockayak

Excuse me, my mistake. I meant direct debit. They set it up to take the full amount each quarter, whatever the figure was.

scheming_gypsy

Cancel the direct debit and set one up online to pay a set amount monthly. It'll more than likely calculate a reasonable amount for you to pay off rather than big chunks

backfoot

There may be grounds to object to the full payment under the backbilling rules.

http://www.energy-retail.org.uk/documents/BackBillingSept-Version8.pdf

There are situations involving billing/payment arrangements which can trigger a claim that beyond 12 months may be invalid.

I would study the document in relation to all of the facts at your disposal. It looks like the supplier does feel that there are mitigating circumstances, hence their concession so far.

On the face of it, if the problem only occurred around a year ago then the 25% reduction may be fair. Do the maths and see where you stand.

Hope this helps.

pimento

Didn't you wonder how you could afford a big holiday?

jalexa

Hockayak wrote: »

Excuse me, my mistake. I meant direct debit. They set it up to take the full amount each quarter, whatever the figure was.

Good. Can you think of any reason eg bank account changes that could explain (without excusing)?

Are you saying that the bill *appeared* to credit the "payments" though they were not being collected (from your account)?

If I could give you one piece of advice at this stage it is to stop dealing with this on the phone but consolidate the issue into a written (or email) complaint. Having done so decline to discuss the issue by phone and insist on written or email responses.

As regards the Billing Code you remain liable in (almost) all circumstances for the last 12 month's consumption. *If* it is the case that the situation arises out of supplier failure I think *agreed* monthly payments for the last 12 months consumption are in order. *If* the Billing Code applies you cannot be billed for electricity consumed more than 12 months prior. (which company BTW, SSE are not signatories but I believe have equivlent measures)

Push this as hard as you like through the complaints process and meanwhile clue up about the Energy Ombudsman.

DVardysShadow

jalexa wrote: »

.... Are you saying that the bill *appeared* to credit the "payments" though they were not being collected (from your account)?

Spell it out. It has been taken from someone else's account. Who may not have had a luxury holiday this year as a result.

SwanJon

Hockayak wrote: »

We have continued to get the bill,
we still received the quarterly letters
Are we obligated to pay the entire amount? I have whittled the amount down to 75% but still, that’s over £1000 to pay off over the next year alongside the actual quarterly bills for next year. I explained to the representative that this would mean us cutting out all luxuries for next year.
they have continued to send the letters stating when they will take the money each quarter.

backfoot wrote: »

There may be grounds to object to the full payment under the backbilling rules.

On the face of it, if the problem only occurred around a year ago then the 25% reduction may be fair. Do the maths and see where you stand.

jalexa wrote: »

As regards the Billing Code you remain liable in (almost) all circumstances for the last 12 month's consumption.
Push this as hard as you like through the complaints process and meanwhile clue up about the Energy Ombudsman.

Sadly, as they appear to have produced bills/statements (and you have received and read them) the Billing code of conduct will not apply.

You could try the ombudsman, but you need to follow their complaints procedure fully first.

As above, 4 months free (25%) seems like a good deal - and a cheap way to learn the lesson to keep an eye on your accounts.