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£3000 in arrears with Utility Warehouse

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HELP! I have just given my meter readings and been told that I am over £3000 in arrears. :eek::eek::eek:
My monthly DD of £44 has been way too low and never adjusted in the last 2 years for price increases - which I guess has contributed.
I have heard that they can only claim back for 12 months worth?
I have had no letters - only a small box at the bottom of my monthly statement asking for reading.
They have said I can pay over next 2 years - but this is still £300 pm which I really cannot afford.
I live in a privately rented small 2 bed cottage - alone, but have storage heaters where the majority of the expense is,
Any advice welcome!! Thanks for your time!
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Comments

  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 October 2013 at 3:31PM
    No, not so. Back billing rule probably does not apply here as they have presumably billed you regularly on estimated readings? When did they last read the meter, and why haven't you been submitting your own reads more regularly? The supplier only has to read the meter every two years-intermediate reads are down to you.
    But how on earth did you think that you could heat, hot water and power a property on E7 for £528pa? If you have built all that debt in 3 years (£1K pa), then you are now using about £175 worth of power each month. The other £125 is debt.
    All you can do is try to negotiate a longer payback period (3 years, if that is how long the debt has been building) or switch to PPM's.
    PS: are you sure that the readings you have given are correct? To build £1K of debt a year while paying £528pa is very high usage, which indicates that you are using an awful lot of peak rate E7 power. What's your annual kWh usage and percentage split between the peak and cheap rate registers?
    No free lunch, and no free laptop ;)
  • apt
    apt Posts: 3,235 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Did you give them a reading when asked? This is guidance re backbilling:

    Each case is looked at on its own merits; however, the 12 month limit for back-bills may apply in these examples when your supplier has:
    • Failed to bill you at all and you have requested bills from them; • Billed you using estimated meter readings instead of valid readings provided by you or a meter reader; • Billed you incorrectly by mixing up meter readings, and failed to act upon information available to put this right; • Failed to do anything about a query or fault you have raised regarding your account or meter and subsequently allowed a large debt to build up on your account; • Failed to reassess a payment arrangement (eg. Direct Debit) within 15 months, or failed to reassess based on a reasonable estimate.
  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    I have heard that they can only claim back for 12 months worth?

    Welcome to the forum.

    There is a back-billing provision in the billing code, but I am not sure if UW have signed up to that code.

    However as stated above, that provision is only where the company are at fault, and from the explanation you have given that provision wouldn't apply with any company.

    The best way to look at the situation is that you have a long term interest free loan!
  • thriftylass
    thriftylass Posts: 4,033 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Really sorry but if you had a monthly statement you should have been aware of the situation so it's not their fault as they can only go by their estimate and you need too pay. You were asked to give reading but didn't. All you can try is to get the payment period extended.
    DEBT 02/25: total £6100 Debt free date 12/25
  • Really tragic when I see threads like this. Householders have what i have always said is effectively a ticking time bomb in their house - the energy meter! I can (almost) understand a householder's energy use not being uppermost in their mind when they get bills sometimes as infrequently as 6 months (like with some suppliers) but Utility Warehouse, AFAIK, are the only UK energy supplier who actually issue a bill every month! This should surely prompt the occasional squint at the meter?

    I agree with Cardew, OP, the only way to look on this unfortunate incident is to see it as an interest free loan over the next 2 years. If you can't do this I guess you would need to contact them again to see if they will extend the payment period.
  • Thank you all so much for your quick and helpful responses.
    I shall take this on board as a very important lesson to keep my housekeeping in order. :o
    They are going to let me pay off over 2 years, but if I cant keep up, I shall ask if possible to extend further.
    Thank you again and best wishes to you!
  • You are not the only one this has happened to. I'm currently fighting them and being treated appallingly. Currently offered over 10% off the arrears and to pay it back over 3 years - lighting for a better deal as that is still too much!

    Wish you big luck
  • Utility Warehouse save money by not reading meters themselves much, and relying on the common sense of Joe Public to put in regular readings, at least every 3 months. Of course Mr Public believes in fairy storys with initial super low monthly direct debits and then deliberately cant be bothered to update the supplier . No chance of getting a reduction, hidden away in the T/C s will be a disclaimer about occupier submitting readings themselves
  • matelodave
    matelodave Posts: 9,084 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I see gem1978 is whinging her way around the forum, still looking for sympathy - having kids and a husband, isn't really much of an excuse for not checking the bills
    Never under estimate the power of stupid people in large numbers
  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    We shouldn't make this a UW thread or it will be deleted/moved.

    I am not a fan of the company but this is a problem that affects all energy companies.

    People are lured into joining companies by being quoted stupidly low monthly direct debit amounts, congratulate themselves and promptly ignore energy bills until the 'day of reckoning' arrives.

    We see this in hundreds of posts.
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