5M UK households now in utility debt..

C_Mababejive

http://blogs.independent.co.uk/2013/04/09/why-are-five-million-households-now-in-debt-to-their-energy-supplier/

and others...

So whats happening?

Well once upon a time we had nationalised industries,a single point of contact and control of the system.

Now we have umpteen fingers in the pie all trying to make a profit.

Massive amounts of debt are being run up ,never recovered and written off...at least they are written off in one way but surely allowances for debt are set against costs and somehow or another, the paying punters pay towards it?

Apart from the ineptitude of utilities in pursuing and recovering debt, they are hamstrung by th system and the courts which obstructs their pursuance of debt.

Utilities spend months and months trying to get warrants to pursue and enforce debt.

There are the cant pays and the wont pays.

Some people think they have a right to fuel you know.

Many small businesses run up huge bills then disappear !

A lot of energy is stolen and not metered but has to be accounted for.

How do you feel about paying other peoples' /businesses utility debt?

MillicentBystander

The whole industry is an absolute shambles. But for the energy suppliers it's actually a brilliantly simple business - just add £50 per household to your actual costs and Robert's your mother's brother. Simples. Millions of households these companies got given and no real incentive to nick any other's. Why risk rocking the boat by, you know, actually competing when the reality would be corporate casualties?

JSR

It's the same as anything else the money owed by unscrupulous individuals has to be made up by everybody else. Nationalisation won't fix it either: Tax avoidance and evasion is a lot bigger problem than people not paying their energy bills! One thing they can do with energy is speed up the installation of smart meters that way the customer and the supplier has up to date billing information and a significant debt should never be allowed to be built up in the first place.

C_Mababejive

But many people have no real intention of paying for utilities. They simply commit fraud and theft. It happens on a grand scale in businesses such as restaurants and takeaways..also in rented domestic properties. Run up huge bills then move on..

globalds

You have the same with shoplifters ..do you refuse to shop anywhere that has stuff stolen ?

rogerblack

globalds wrote: »

You have the same with shoplifters ..do you refuse to shop anywhere that has stuff stolen ?

There is some difference.
Tesco, whatever their flaws, tend to get upset and take action when you start wheeling a trolley past the tills at a run.

However, the initial post is rather hyped, and basically wrong.
Sure - there is fraud, and reducing this would be a good thing.
It's not going to significantly reduce debt though.
It's the rocketing cost of the fundamental fuel that's causing the debt, as well as peoples static or falling incomes.

Wywth

C_Mababejive wrote: »

http://blogs.independent.co.uk/2013/04/09/why-are-five-million-households-now-in-debt-to-their-energy-supplier/

and others...

So whats happening?.

From the article:

... partly because a quarter of households has been incorrectly billed by their energy supplier, often leading them to receive a sudden shock demand for the back underpayments.

But it’s also because people in debt often tend to ignore bills in the misguided hope they will simply go away.

:cool:

Edit: The blog, which is almost 2 months old now, appears to be based on a uswitch "news" article involving ... you've guessed it, their one and only Ann Robinson again.
http://www.uswitch.com/gas-electricity/news/2013/04/09/collective-consumer-debt-to-energy-suppliers-tops-637m/

I've mentioned before that news articles or press releases involving Ann Robinson are usually thinly veiled, free adverts in an attempt to entice more people to use uSwitch.

e.g.

“The important thing for households is to try to keep a lid on energy costs. There are two simple ways to do this — use less energy by making our homes more energy efficient perhaps by taking advantage of theGreen Deal, and paying less for the energy we do use by switching to the most competitive tariff for our needs.”

C_Mababejive

I do have some experience of the utility debt market. There is seriously big money being lost either by failure to pay or deliberate theft and/or fraud. All that debt doesnt disappear. Presumably it is redistributed amongst other consumers?

It is not uncommon to be in pursuance of a domestic debt of a couple of thousand pounds. When you gt into small businesses such as cafes,restaurants,kebab houses,takeaways,,,well you could easily be talking 5 to 10 grand. They often just shut up shop and walk away,opening up elsewhere. Larger businesses? well the skies the limit. I know of one case only this week involving a debt of £40,000.

rogerblack

C_Mababejive wrote: »

I do have some experience of the utility debt market. There is seriously big money being lost either by failure to pay or deliberate theft and/or fraud. All that debt doesnt disappear. Presumably it is redistributed amongst other consumers?

And what is the total per household per year average?
50p? £5? £5000?

Without numbers, your implication that it's a major part of the electricity cost seems somewhat dubious.

[Deleted User]

Suppliers now have got their wish to raise the minimum inspection levels from 2 years to 5, apparantly they think they can ensure the health n safety aspects of meter bypassing by some miraculous way. British Gas keep warrants and forced entry to an absolute minimum. Our new BG meter contract have virtually taken out nearly all regular inspections of prepay meters ( the biggest fraudsters ). BG Revenue Protection Unit for my very large area consists of ONE man on his own who is supposed to monitor non paying prepays and credit meters. I am fresh from yet another "find " this week of one chav and his substituted gas meter where he d had 4 years free gas and lovely warm hot house for four very cold winters. Lets see how much debt they ( Scottish Power ) decide to stick on his new prepay, and how little he will pay back before he once again fiddles the meter, this time making a better effort to keep me from checking the meter.
Rogerblack.. the numbers of bypassing fraud is a total unknown. I dont think there is a way of correctly measuring the loss. Power stations and Gas know their imput into the grid. and they can work out the kwhs paid for I suppose.

yangptangkipperbang

The story in the Independent is a bit "wooly" to say the least.

"Shock new figures published today" Where ? By who ?
"Incorrectly billed by their energy supplier" ie: not paying enough on their DD and getting a catch - up bill: try reading your meter to cure this one !