Back dated billing for Business Energy Tariff

GreenT_2

Good Morning to the MSE team and fellow members,

I am a newbie to this forum and would be very grateful for some advice regarding a certain billing matter I currently have with British Gas please?

I have an Economy 7 meter at my shop and British Gas have been supplying my shop for the last 2 years on an Economy 7 tariff and I've just recently renewed with them after some 'to'ing and 'fro'ing and them agreeing to price match and offer me a great deal.

I was a little miffed with them last year with the automatic 'roll over' which I was a little naive to understand and I was tied in with them for another year, but on the whole, I was satisfied with the level of service I received from them. Before I recently renewed with them, I was given a £700.00 refund of my credit that I had accumulated with them and this was given on the basis of accurate meter reads.

After receiving the new contract renewal notification letters through, I had a call from their 'Electricity Imbalance Account Manager' and I was advised that when they 'rolled' me over last year, they continued to bill me to the same tariff I was on previously which was Electricity Day rate 10.06p per kWh, Electricity Night rate 5.5p per kWh rather than putting me on the new prices in line with their tariff change which was Electricity Day rate 17.73p per kWh, Electricity Night rate 9.37p per kWh?

Because of this error (which I must remind was THEIR error NOT mine!!) they are now trying to bill me for my previous consumption on the correct tariff and are suggesting that I now owe them £1,496.00 and are suggesting payment terms to help pay this outstanding balance and I'm not happy about and I don't agree with it?

I have a friend who works at an Energy Company who advised me that, although wrong as it is, they can bill me for this as long as it's within a year, which it is, but I wanted to ask any fellow members if they've come across a similar situation and what actions they took and what was the outcome?

I haven't contacted OFGEM yet as I understand that you have to go through the complaints procedure first of the particular supplier in question and if you have no satisfactory resolution, then OFGEM will assist further?

I look forward to receiving some guidance from my fellow members and thank you in advance.

antrobus

According to OFGEM;

Back billing happens when suppliers do not bill a customer for some time but then issue a bill for energy that has been consumed but not previously billed.

In your case, the energy consumed was previously billed, so I don't think it's a actually an issue of back billing as such; it's the case that your supplier is now claiming that the energy consumed was billed at the wrong price.

I'm not so sure that the law permits people to retrospectively change prices on contracts, so I'd be looking at what evidence exists in the form of the original contract of supply and the terms of the later automatic rollover to see what prices British Gas were quoting.

antrobus

Cardew wrote: »

...The 12 month back-billing provision only applies to domestic customers not business customers. Even for domestic customers it is only a code of conduct, not a regulation....

It only applies to domestic customers at present. But Ofgem have recently announced that most suppliers are committed to applying it to small business customers from 2014.

GreenT_2

Hi Antrobus and Cardew, and thank you for your posts.

My bad Antrobus, you're absolutely right, it's not back billing and it is just a case of them billing to the wrong unit prices.

Cardew, this isn't a 'water' related query, it's electricity so I don't think the consumer council for water would be able to advise me about that,.....or would they?

Cheers

dogshome

Buriness Utility supply is a minefield where even the BIG 6 suppliers play a game of 'Shark', to see who can take the biggest bite.

You don't give tariff prices on your new contract, but those on year One and year Two make interesting reading:
Day Kwh up from 10.6p to 17.73p - Up 67%
Night Kwh up from 5.5p to 9.37p - Up 70%
So what prices have you got on a negotiated contract for year 3? - Are they lower than those BG now want to charge for year 2?

Cardew

GreenT wrote: »

Hi Antrobus and Cardew, and thank you for your posts.

My bad Antrobus, you're absolutely right, it's not back billing and it is just a case of them billing to the wrong unit prices.

Cardew, this isn't a 'water' related query, it's electricity so I don't think the consumer council for water would be able to advise me about that,.....or would they?

Cheers

Doh, I can't think why posted that - I have deleted my silly post

Sorry!

Fire_Fox

When you were rolled over onto the new fixed term contract did you know the prices were increasing or did you get wrongly informed? If the latter you might have an argument for the old prices forming part of the new contract.

GreenT_2

Cardew wrote: »

Doh, I can't think why posted that - I have deleted my silly post

Sorry!

Cardew, that's absolutely fine mate. You were only trying to help and I really appreciate it

GreenT_2

dogshome wrote: »

Buriness Utility supply is a minefield where even the BIG 6 suppliers play a game of 'Shark', to see who can take the biggest bite.

You don't give tariff prices on your new contract, but those on year One and year Two make interesting reading:
Day Kwh up from 10.6p to 17.73p - Up 67%
Night Kwh up from 5.5p to 9.37p - Up 70%
So what prices have you got on a negotiated contract for year 3? - Are they lower than those BG now want to charge for year 2?

Hi dogshome and cheers for your post. The unit prices I've negotiated and renewed on are as follows:

Electricity Day rate 11.85p/kWh
Electricity Night rate 6.78p/kWh
Daily standing charge 21.27p

Fixed contract for 1 year

As you can see, they really stung me last year!!

GreenT_2

Fire_Fox wrote: »

When you were rolled over onto the new fixed term contract did you know the prices were increasing or did you get wrongly informed? If the latter you might have an argument for the old prices forming part of the new contract.

Hi Fire Fox and cheers for your post.

I've just checked the contract renewal letter they sent through last year and it DOES advise of the price increase they're now trying to bill me for so it would appear that I can't argue that point with them....?

dogshome

Hi Green T - The rates you are now on are 'virtual' domestic, no wonder you're spitting blood

However, the Wind of Change is Blowing
Go onto Ofem's web site and enter "micobusinesses" into the search window in the Top R/hand corner

This brings up a list of reports & discussion docoment for contract changes that Ofgem want to bring in, in Winter 2013 - Item 10 is proposals by the Assn.of Convenience Stores - Much of what they wish for is already included in Ofgems proposals