electricity estimates

Basilb_2

Hi All – apologies if a similar thread exists – I did search. I have just come to the end of a cheap (ish) electricity tariff and my provider is moving me to one 40%more expensive. I was preparing to switch, when they sent me an estimated bill which was a 1000 units higher than I had used. They are charging me these 1000 units at the cheap tariff rate. I was therefore thinking of staying with the provider until I had actually used these 1000units. My question is when I do actually leave they will realise their estimate was wrong and will they try to 're estimate their estimate’ and charge me the higher tariff rate from when they thought I began using it? Are they allowed to that? Thanks for any thoughts.

jalexa

Basilb wrote: »

I have just come to the end of a cheap (ish) electricity tariff and my provider is moving me to one 40%more expensive. I was preparing to switch, when they sent me an estimated bill which was a 1000 units higher than I had used. They are charging me these 1000 units at the cheap tariff rate.

Unfortunately your logic is flawed. The "saving" should be calculated against the cost of the cheapest available whole of market tariff, not an arbitrary standard rate "holding" tariff.

You have a choice either to switch, a process which typically takes from 4-6 weeks or to transfer to your current supplier's "best for you" tariff (as identified by a comparison website). Such transfer would be seamless at maturity of your current tariff.

Up to you what you do, but there are one or more stings in the tail from "playing with the estimate" in the way you suggest.

Basilb_2

Thanks for your reply. I have been comparing against the current cheapest on the market which is still£130 a year more. So I will save about £22 by using the 1000 units. Not huge but better in my pocket. I am interested in what the stings in the tale are though. Thanks.

jalexa

Basilb wrote: »

So I will save about £22 by using the 1000 units. Not huge but better in my pocket.

OK, but a flaw you have not considered is that you have to pay for 1000 units ahead of when you use them.

HappyMJ

jalexa wrote: »

OK, but a flaw you have not considered is that you have to pay for 1000 units ahead of when you use them.

As it was such a cheap tariff I imagine the OP is on monthly direct debit and hasn't actually paid for them yet and this is just a statement. They will probably up the direct debit though at the next review.

Basilb_2

Yes - I'm on a monthly direct debit and they have upped the amount they take. I will be paying a bit in advance, but I think it is worth it for the saving.

Terrylw1

The current supplier won't even notice as long as your closing reading is higher than the estimate. Even if they did, they can't prove that you have used less than the estimate so if it works fitpr you over switching, go for it.

In terms of switching, the 4-6 weeks is the time to actually transfer data between suppliers and their agents, so your switch date is set in stone at the start of the process, it cant move based on the level of time to actually get you over.

jalexa

Terrylw1 wrote: »

The current supplier won't even notice as long as your closing reading is higher than the estimate. Even if they did, they can't prove that you have used less than the estimate

Here is another scenario for your comment. If the OP didn't switch but the supplier took an actual reading less than the "estimate", the account would be unwound to the last "actual" an rebilled around the price increase.

I don't know if that is still done but it happened to me once.

A side effect is that the OP could end up paying full standard rates having lost the opportunity to switch to a no longer available tariff.

As an aside I think to knowingly do what is proposed is no less "fraudulent" than Edf's unsubstantiated recalculation of direct debit described in another thread.

Horseunderwater

Hence why I stick to pre payment meters. I know I pay slightly more, but I also know exactly what my costs are from week to week! And last year I even beat the estimated usage that BG kept telling me was going to go up by well over £100 on both fuels!

Basilb_2

Not sure about it being fraudulent - I'm sure energy companies frequently under estimate peoples bills, so when tariffs change people are paying higher rates for energy they have already used - I'm just doing the opposite. Maybe they should use some of their mega profits to employ more meter readers!

jalexa

Basilb wrote: »

I'm sure energy companies frequently under estimate peoples bills, so when tariffs change people are paying higher rates for energy they have already used -

Hmmm... Why would they want to benefit the competition?

As far as estimates being under, over, or even accurate, the best way for the entire customer base to address that is to ensure every bill reading is close to actual. That process is specifically referred to in the Code of Practice for Accurate Bills. Allthough I'm not certain that consumer compliance with the code is "required", it is a potential customer benefit to be in a position to "require" the supplier to comply.

You, on the other hand, are on your own.