Can energy companies back bill 4 years?

the_original_one

Forgive me for the length of this story but I was looking for some advice.

I moved into a newly renovated property 4 years ago, when I first moved in I was unable to find out who supplied my gas/electricity. I contacted everyone I could think of and was eventually told that I had a "ghost" supplier and could go with whichever company. So I phoned Scottish power explained the situation and they agreed to take over supply. I paid every bill on time, ensured meter readings were accurate etc and never had a problem. 4 years later Jan '14 I receive a bill from British Gas for 4 years of gas/electricity amounting to £3000 in total. 4 months later it has been concluded that British gas have been my supplier all along, when Scottish power took on the contract they hadn't checked the meter serial number matched the meter in my flat and so have been billing me for the wrong meter. Scottish Power are currently issuing a refund to the amount of £1500 which is how much I have paid over the 4 years. I read that energy companies are trying to bill in these situations they can only back-bill for twelve months. 2 people I have spoken to at British Gas have agreed and the third has said no - I have to pay the full amount as they have not made a mistake it transpires that they were billing the builder for 4 years as the builder never informed them of the completion. The builder apparently realised in January and so we get a bill..... Is this correct that I am to pay the full four years and if so why are the amounts so drastically different? I havent much of a clue about all of this end have been getting such different information that I would appreciate any help you could give.

2013yearofthehouse

How many kwh have you used and paid for with Scottish Power? Presumably you are a very low user if you really have only used £1500 worth of energy in 4 years.

How many kwh do Brittish gas want to change you for?

Even given a difference from a competitive tariff with SP to an expensive standard tariff with BG, I wouldn't expect the cost to be double. Are they just expecting you to pay what they charged the builder, which is inaccurate? Either through the use of highly overestimated usage or through a potentially overpriced non-domestic/residential tariff?

the_original_one

Currently British gas are charging from zero as they were new meters and it's 1696 for gas and 7507 for electricity, I have however just checked bill again from British gas and saw the consumption charge is 23.86p as opposed to 11.652p for Scottish power. Am I correct in assuming this would account for why the bill is almost double? I havent paid anything since January so I.could accept there would be a slight discrepancy but not this much. Would this tariff be something I could discuss with them?

2013yearofthehouse

the_original_one wrote: »

It's 1696 for gas and 7507 for electricity, I have however just checked bill again from British gas and saw the consumption charge is 23.86p as opposed to 11.652p for Scottish power. Am I correct in assuming this would account for why the bill is almost double? I havent paid anything since January so I.could accept there would be a slight discrepancy but not this much. Would this tariff be something I could discuss with them?

What's 23.86p - is that the price per kwh of electric? If so, then that is higher than I've ever seem on a standard domestic tariff. I may be wrong, someone with more knowledge can probably help, but the highest standard tariff electric kwh price I've seem is about 19p. Does the BG bill name the tariff they are using? I think you can quite rightly argue that given the choice you would never choose to be on a tariff with such high charges, so shouldn't be expected to pay that much regardless of whether it's for 12 months or 4 years.

2013yearofthehouse

the_original_one wrote: »

Currently British gas are charging from zero as they were new meters and it's 1696 for gas and 7507 for electricity

Sorry I replied before you'd edited....


Did SP bill you from zero also?

the_original_one

No bother; they did yes. The bill from BG states I'm on the standard tariff (for the electricity) I don't know about the gas (I will ask them to send out a bill for this) but up until 20th July 2013 (according to the bill I have used 727kwh at 23.86p and then it changes from 20th July 13 to say that since July 2013 I have used 6000 kWh over the next year to reach my current reading and was charged at a combination of 23.86p and 21.290p. Thankyou very much for your advice so far, I am kinda clueless about all of this!

2013yearofthehouse

the_original_one wrote: »

No bother; they did yes. The bill from BG states I'm on the standard tariff (for the electricity) I don't know about the gas (I will ask them to send out a bill for this) but up until 20th July 2013 (according to the bill I have used 727kwh at 23.86p and then it changes from 20th July 13 to say that since July 2013 I have used 6000 kWh over the next year to reach my current reading and was charged at a combination of 23.86p and 21.290p.

....and is that correct? Have you used that much? You said you'd taken regular meter readings, so check they are billing actual usage and not an estimate first. Then, like I said, I would argue that you wouldn't knowingly have been on their standard tariff at those prices.

I don't know enough about back billing to advise, but I'm sure someone else with reply with regards to it. Problem is, are you saying you have actually used 6000kwh of electric since July 2013? That surely isn't right? If you've used over 6000kwh in the last 12 months out of 7500kwh in the last 4 years, then only paying those 12 months won't unfortunately make much difference.

the_original_one

No, as far as consumption on the dates mentioned are concerned it's definitely wrong but the amount used in total over the 4 years is correct. I explained this to someone in the complaints department at BG as I had been advised about the back billing so I used my SP bills to give accurate readings at certain dates (using the actual readings) and was told that it didn't matter about what the readings were at certain dates as the back billing policy doesn't apply to this and I am being charges for the total amount.

I. Will definitely enquire as to the tariff and see if this makes a difference as it seems ridiculous that two companies produce bills so different for the same amount used.

2013yearofthehouse

Someone with experience of the back billing procedure will have more detailed information and hopefully reply, but my basic understanding is that it is reduce the shock of a sudden big bill, which is what you are being faced with really, since a £1500 refund won't even come close to covering a £3000 bill. I would push for a 12 month bill (even if it does have to be at their high prices - hopefully this still makes the bill no more than £1500) using your accurate SP meter readings.

Aquamania

2013yearofthehouse wrote: »

Someone with experience of the back billing procedure will have more detailed information and hopefully reply, but my basic understanding is that it is reduce the shock of a sudden big bill, which is what you are being faced with really, since a £1500 refund won't even come close to covering a £3000 bill. I would push for a 12 month bill (even if it does have to be at their high prices - hopefully this still makes the bill no more than £1500) using your accurate SP meter readings.

12 month back billing voluntary code does not apply as it's not the suppliers fault.

the_original_one

Thanks very much for all of your help with tariffs and back billing etc, I wil obviously pay what I owe and it that's needs to be the full 4 years then so be it (although I was hoping otherwise!) I will enquire as to the higher tariff to see what they say and even if I can get some shaved off it'll be something.