British Gas nightmare - any advice?

studentsaver166

Hello all -

This is just a little desperate plea for any sage advice as I'm in a bit of a pickle.

I've just come off the phone in tears after 40 minutes on the phone to British Gas because they've hit us with combined bills totalling over £500 and I just don't have the money to pay for it. At first I thought it must have been a mistake because we are just 2 people in a small 2 bed flat and we both work long hours so are hardly home. When I called them, however, they informed me that the bills are for back charges to May 2010 to compensate for under-estimation.
I understand that this is money that we do genuinely owe, but they have given us so few options of how best to sort it out and now I just feel totally stuck and helpless.
When I explained to them that we just physically cannot afford to pay the full amount at once, they said the minimum we could do was pay £115 per month for a year, to cover the debt and estimated consumption. This is just so much money and we don't have enough to cover it, so I asked if there was any other option and they said no.
I also asked if we could arrange a long-term, Direct-Debit payment plan to re-pay the debt, while we switch to a different supplier (I hate British Gas) and they said that if we tried to switch whilst owing them money, they would contact the other company and stop us from moving, even if we had agreed to a payment plan.
I feel like I'm stuck between a rock and a hard place. Does anyone have any wise words? Or, failing that, a cup of tea and a few tissues?!

SS

zaksmum

studentsaver166 wrote: »

Hello all -

This is just a little desperate plea for any sage advice as I'm in a bit of a pickle.

I've just come off the phone in tears after 40 minutes on the phone to British Gas because they've hit us with combined bills totalling over £500 and I just don't have the money to pay for it. At first I thought it must have been a mistake because we are just 2 people in a small 2 bed flat and we both work long hours so are hardly home. When I called them, however, they informed me that the bills are for back charges to May 2010 to compensate for under-estimation.
I understand that this is money that we do genuinely owe, but they have given us so few options of how best to sort it out and now I just feel totally stuck and helpless.
When I explained to them that we just physically cannot afford to pay the full amount at once, they said the minimum we could do was pay £115 per month for a year, to cover the debt and estimated consumption. This is just so much money and we don't have enough to cover it, so I asked if there was any other option and they said no.
I also asked if we could arrange a long-term, Direct-Debit payment plan to re-pay the debt, while we switch to a different supplier (I hate British Gas) and they said that if we tried to switch whilst owing them money, they would contact the other company and stop us from moving, even if we had agreed to a payment plan.
I feel like I'm stuck between a rock and a hard place. Does anyone have any wise words? Or, failing that, a cup of tea and a few tissues?!

SS

Isn't there an Ombudsman you can contact, Ofgas I think? They might be able to help. Or speak to your local CAB?

CharlieBilly

Yes they can stop you moving until debt is paid. Am I right in saying that since May 2010 you have only had estimated bills and now this is a catch up bill?

studentsaver166

CharlieBilly wrote: »

Yes they can stop you moving until debt is paid. Am I right in saying that since May 2010 you have only had estimated bills and now this is a catch up bill?

Apparently so. The bill itself did not make that clear, which is why I had called them, as from the bill it appeared to show that we were paying that amount for just 1 quarter, but now they have told me that it's catch up for that entire period.

I know, technically, that this is our fault for not giving them readings, but they have only read the meter once in our 2 years of living there. Now they tell me that's industry standard and they have every right to demand the money immediately. I know ignorance is not an excuse but this just smacks of a system specifically designed to screw over consumers like us.

Blackdog

So sorry to hear about this issue, virtual cup of tea and tissues on its way to you!
If I were you I would talk to your local Citizens Advice Bureau as soon as possible. They will be able to tell you what has been done to help other people in your situation. You almost certainly will have to stick with British Gas until the debt is paid off so try an approach that acknowledges that you have to pay the debt off and negotiate on how much you can afford to pay. Hopefully they will allow you to pay them less per month but over a longer period. Good luck and do go and get some advice from CAB.
Here is a link http://www.citizensadvice.org.uk/

studentsaver166

Yes, I know that compared to what some people have to pay that £115 per month isn't much, but it's a lot for a small flat with just 2 people in it. The fact is that we just don't have that money to spare. My problem is not with the fact that we owe it, it's with the very limited options we've been giving for paying it back. I'm angry at the whole system.

macman

How much is your existing DD? If the debt has built up over about 20 months, then they should allow you a similar period to pay it back-so some some negotiation may be required. So a debt of £500 could be paid back at about £25pm on top of your existing DD. But remember that your existing DD amount must rise as well to cover the shortfall, as it is too low to cover ongoing consumption. On the figures you've given so far, your DD has to rise by at least £25pm, probably more.
I don't understand why you said that you've only been given 'limited options' to pay it back.What other options are there than increasing your DD. Moving from BG would not reduce the debt.
How have you have not checked your bills since May 2010-each bill would have said 'estimated ' on it. Do you not check your bills against actual consumption as shown on the meter? The supplier is only required to read your meter every 2 years-you should be reading it yourself at least every 3 months to avoid this scenario.
You won't be able to switch until the debt is down to about £200. But have you switched to the cheapest available tariff in the meantime? if you haven't looked at your bills in years, you are probably on the most expensive tariff-Standard.
If you cannot afford a higher DD, then your only option is to voluntarily accept a PPM-which may be the better way forward.

studentsaver166

Thanks Blackdog, I will get in touch with them. I did ask BG if we could negotiate the monthly cost down to something more affordable and they said no. I think the guy I spoke to felt pretty bad when I cried though!

studentsaver166

macman wrote: »

How much is your existing DD? If the debt has built up over about 20 months, then they should allow you a similar period to pay it back. So a debt of £500 could be paid back at about £25pm on top of your existing DD. But remember that your existing DD amount must rise as well to cover the shortfall, as it is too low to cover ongoing consuption
How much is your existng debit
I don't understand how you have not checked your bills since May 2010-each bill would have said 'estimated ' on it. Do you not check your bils against actual consumption as shown on the meter? The supplier is only required to read your meter everye 2 years-you should be reading it yourself at lest every 3 months to avoid this scenario.
You won't be able to switch until the debt is down to about £200. But have you switched to the cheapest available tariff in the meantime. if you haven't looked at your bills inn years, you are probably on the most expensive tariff-Standard.

We don't pay by DD because the bills go out of my housemate's account and she has a fairly erratic pay schedule so didn't want to set up a DD. As the rent comes out of my account I couldn't afford to put another DD on mine, so we pay quarterly. I have always done a sense-check on the bills and they have seemed in line with what I would expect. I have also checked the meter a few times and it's seemed approximately ok, but obviously with the time lapse between the end of the period and receiving the bill the figures on the meter change so I can't check it precisely. We haven't submitted readings, hence why we are in this mess and for that I take full responsibility. All I wanted was confirmation of what they were charging us for (because the bill made no mention of the charges being for catch-up) and a reasonable payment plan offer from them. I have also asked about tariffs many times and they repeatedly tell me that the standard tariff is the best option for us. I even asked again just now on the phone and was told, again, that Standard was the cheapest for us. I don't know how to deal with these people any more. I don't believe anything that they say.

studentsaver166

Antispam wrote: »

Your consumption and the amount you have paid over that time and the fact you have relied on estimated billing is the reason you are in this mess now.

Yes, I realise that. I never said that it wasn't my fault. I am a human being and occasionally make mistakes. Helped along by systems that are only too quick to take advantage of that, of course.

macman

studentsaver166 wrote: »

We don't pay by DD because the bills go out of my housemate's account and she has a fairly erratic pay schedule so didn't want to set up a DD. As the rent comes out of my account I couldn't afford to put another DD on mine, so we pay quarterly. I have always done a sense-check on the bills and they have seemed in line with what I would expect. I have also checked the meter a few times and it's seemed approximately ok, but obviously with the time lapse between the end of the period and receiving the bill the figures on the meter change so I can't check it precisely. We haven't submitted readings, hence why we are in this mess and for that I take full responsibility. All I wanted was confirmation of what they were charging us for (because the bill made no mention of the charges being for catch-up) and a reasonable payment plan offer from them. I have also asked about tariffs many times and they repeatedly tell me that the standard tariff is the best option for us. I even asked again just now on the phone and was told, again, that Standard was the cheapest for us. I don't know how to deal with these people any more. I don't believe anything that they say.

Only if you refuse to pay by fixed monthly DD. The Online Energy tariff will give you an immediate 4% saving against Standard-just log in to your account and switch online.
http://www.britishgas.co.uk/products-and-services/energy/our-tariffs.html?WT.seg_3=i100272
I'm afraid that if you've been on Standard for some years then you are just throwing money way-it's always the most expensive tariff.
Sorry, but to have a disparity of £500, the meter readings and bill estimates must have been wildly out of kilter. A few days between estimate date and read date would not make any material difference. So blaming 'the system' is not really fair.
Your priority is to work out how much you are actually using per month (your annual consumption divided by 12), how much that will cost you at current prices, and how much on top of that you can afford to pay to recover the arrears over x months.