Co-operative Energy - Huge Bill Following Direct Debit Review

curiousorange

Hi everyone

I need a bit of advice regarding trouble I'm having with my energy supplier, Co-Operative Energy. Basically, about five weeks ago I received an email from them telling me my Direct Debit payment was being reviewed and it was shooting up to £80 a month to cover my payment and the debt I was in to them. The news that I was in debt came as a shock because I hadn't received any correspondence to the effect that I was underpaying. Their site says that they endeavour to undertake reviews every six months to help their customers.

I live alone in a single-bed, electricity only flat. When I joined Co-op when I moved in two years ago, they set my DD payment at £26 a month, which I thought was low even at the time, but figured that since I'd never lived alone the company would set a rate that was appropriate. This was naivety on my part, I admit, but since I've been living here I haven't had any correspondence asking me if I wanted to raise the level of my direct debit.

Because of this, I have been steadily accruing debt to the level of over £400. The company do send me quarterly statements but again, because I pay direct debit I was keeping these for reference rather than actioning them. Of course, after I received the news of the debt I looked them over and of course, I've been piling up debits since I moved in in October 2011. Most of the debt was amounting during 2011-12, when estimates of my usage were set at almost double what they actually are. In summer 2012, I was estimated to be using more electricity than at points during the previous winter.

I took this up with the company, who are willing to discuss direct debit adjustments but say they cannot review the level of debt I'm in as estimates are standard practice. They apologised for the lack of direct debit reviews but claimed that they spoke to other customers who felt them unnecessary at six-month intervals, so didn't bother with them for me.

So, after that long-winded (and cringeworthy, given the level of naivety I showed over bills, estimates and the like) story, I was wondering if anyone had any advice on the following points:

1) Do Co-op have to share any accountability for the debt I'm in given that they promise regular customer reviews on their website?

2) Is there anything that I can do to get the supplier to review my level of debt, given that it's based on quarterly estimates? What I mean is perhaps look at my actual average use per month over two years, and work out what I've paid versus what I owe? For example, in 2011-12, there were times where I was estimated to use over 7000kwH per year, and in actual fact I've used just over 8000KwH in 2 years.

I understand if I have to chalk this one up to experience, but I just want to know if I can avoid paying out a sizeable sum as opposed to a much reduced one.

Many thanks

ValHaller

1) You now have had a customer review - so they are sort of meeting their promise

2) You need to counter them with facts

Average use yadda yadda on its own does not cut it for the moment. What is relevant right now is how much arrears they claim (£400) and the difference between the readings on your metr right now and the final readings on your latest bill

Mojisola

I get an email every quarter showing how much I'm using and whether the DDs are keeping up with the usage. Haven't you been receiving these?

curiousorange

Excuse my ignorance, but how will my current usage versus my last bill help with arrears accrued over twelve months previously?

Mojisola

curiousorange wrote: »

Excuse my ignorance, but how will my current usage versus my last bill help with arrears accrued over twelve months previously?

When the first quarterly bill came, the figures would show that you were using more electricity than you were paying for. You would then have the option of reducing your usage down to the amount you were paying for or increasing your DD or just putting extra money away so that you would have it when you were asked to pay up.

That would have happened every quarter with the bills showing that you were getting deeper and deeper in debt to them.

curiousorange

Okay, that's answered my query. Good job I'm leaving, my partner's much better at this stuff!

Scottishmummy

curiousorange wrote: »

Most of the debt was amounting during 2011-12, when estimates of my usage were set at almost double what they actually are. In summer 2012, I was estimated to be using more electricity than at points during the previous winter.



2) Is there anything that I can do to get the supplier to review my level of debt, given that it's based on quarterly estimates? What I mean is perhaps look at my actual average use per month over two years, and work out what I've paid versus what I owe? For example, in 2011-12, there were times where I was estimated to use over 7000kwH per year, and in actual fact I've used just over 8000KwH in 2 years.

I am confused. They have estimated you to have used double what you have actually used? So have you given them a correct reading? If not, why not? Surely a correct reading would then show you do not owe them anything as they have over estimated your usage.

curiousorange

Scottishmummy wrote: »

I am confused. They have estimated you to have used double what you have actually used? So have you given them a correct reading? If not, why not? Surely a correct reading would then show you do not owe them anything as they have over estimated your usage.

Throughout 2012 my estimated usage was 7340 KwH based on estimates only. I did not submit monthly readings throughout that year- something I acknowledge I should have done, but as the meters are in a communal area I thought the figures would be taken by a meter reader rather than me have to do it. Because these estimates were high, I was accruing debt at a higher rate.

My energy consumption was then recalculated in my latest statement as 4522KwH per year and following another reading, to 4105KwH. What I was trying to tell Co-Op was that over the course of nearly two years, I have only used 8210KwH in total based on first and current readings, so why should I have to pay for debt caused by inflated estimates when I couldn't have used anywhere near that amount in practice?

labp04

For my money, and this might not be too "helpful", you dont seem to have done the basics: submitted monthly readings; monitored your electricity useage; made sure your DD is enough; and, periodically, reviewed any options for changing suppliers. Assuming your meter reading is correct and was when you first became a customer, it's difficult to see any options other than to pay up and, as you say, "chalk it up to experience". Hopefully, your experience, will serve as a reminder to me and anyone else who agreed to manage an account on-line. :think:

ValHaller

curiousorange wrote: »

Throughout 2012 my estimated usage was 7340 KwH based on estimates only. I did not submit monthly readings throughout that year- something I acknowledge I should have done, but as the meters are in a communal area I thought the figures would be taken by a meter reader rather than me have to do it. Because these estimates were high, I was accruing debt at a higher rate.

My energy consumption was then recalculated in my latest statement as 4522KwH per year and following another reading, to 4105KwH. What I was trying to tell Co-Op was that over the course of nearly two years, I have only used 8210KwH in total based on first and current readings, so why should I have to pay for debt caused by inflated estimates when I couldn't have used anywhere near that amount in practice?

As I said earlier

What is relevant right now is how much arrears they claim (£400) and the difference between the readings on your meter right now and the final readings on your latest bill

What is the difference between readings on your meter now and the final readings on your latest bill - and what is the date of that bill?

You effectively need a revised bill with up to date readings and the Direct Debit based on that.

roddydogs

I had the same thing, but before clever people say "You should have checked" etc, the bulk of the arrears were due to a huge last winter bill (even taking the 16% iton consideration).