Generic question

x_xlexusx_x

Hi there,

I haven't been able to find the answer to this anywhere else so I'm hoping someone here can enlighten me.

Why do energy companies still use a system of estimates to calculate our usage and bills? Surely in this age of technology and instant information sharing, there should be a more accurate method of reading our usage and charging more appropriately without the need for them to send people to physically read meters.

I have recently been told that I owe over £2k all of a sudden for our two bed all electric apartment because the energy company undercharged us previously. While I don't dispute thathwe should pay for our usage, I don't see how it is fair to do it this way when it is not my error, I would have paid more monthly had I known sooner - spread the cost. The energy company has been helpful in working with us to organise affordable repayments but I still feel we shouldn't be in this situation at all.

So I'm trying to understand why it isn't simpler to provide accurate bills instead of continuous estimates.

Thank you.

Nada666

It is your error - you did not take thirty seconds to note that there was a £2,000 discrepancy. You were entirely free to check and change your payment at any time.

Smart meters are being rolled in by 2020 - that costs money - you have to pay for it (centrally with the tariff prices, not meter by meter.)

You can choose quarterly direct debit payments instead - they are more robustly based on actual reads.

As to why there is variance with standard reads - no idea, but it is better for automated systems to ignore wild reads than to accept the readers' figures and then change debits wildly every quarter or read.

Of course it should be more robust - but the (being phased out) current system is better for most households who can be bothered to spend one or two minutes once or twice a year to monitor their statements and stay in control.

macman

The supplier is required to read the meter once every two years-the intermediate reads are down to you (and should be done every 3 months before your bill is due). You don't run up a £2K deficit overnight, even in an all-electric property, so clearly you have had at least 4-6 estimated bills that you have failed to verify against actual readings, and then supply actual readings in order that revised and accurate bills can be supplied. In the meantime you've had £2K interest free credit, so why complain when the remedy was in your hands?
What was your original DD set at-you must have been aware that you were hugely underpaying?

matelodave

I agree with both Macman & Nada, it's down to you to check your bills, consumption & payments. I'm sure you check that your payslip is correct every month so why is gas, electricity or water any different. It's still your money and you should take charge of it.

x_xlexusx_x

Hi, thanks for your responses.

Nada, thank you for answering my actual question about the system. I was genuinely interested in how it worked and potentially improved. I didn't expect to be picked on and judged.

I appreciate the other comments about my bills and would note that I do check my bills every month or sooner where required. I have spoken with the energy company every other month and I do take control of my own finances thank you. I wasn't underpaying by comparsion to previous bills and this amount did come out of a new estimate for the quarter. I only included this detail to show why I was asking about the system.

I am not an ignorant or irresponsible person but thank you for assuming so.

Biscuit_Tin

x_xlexusx_x wrote: »

...Why do energy companies still use a system of estimates to calculate our usage and bills? ....

Not sure if serious or not...

But anyway, estimates are used where the supplier does not have actual meter readings.

Ask yourself where the meter is located, and hence who is closest to it to obtain regular meter readings.

You can use all types of modern technology to pass this information on, from writing a letter in your best handwriting using a ball point pen (or even a fountain pen or a quill if you are not up with latest technology), or a clever device first invented by Alexander Graham Bell ... the kids tell me you can even use an App on them with some suppliers today (whatever an App is)

Or as you appear to be able to use the internet, many suppliers will also accept readings this way.

Ah, the wonders of modern technology, eh?

Biscuit_Tin

x_xlexusx_x wrote: »

...I appreciate the other comments about my bills and would note that I do check my bills every month or sooner where required. ....

I think that probably answers my query wondering it this was serious.

To use over £2k worth of energy in one month is some going! :cool:

macman

Your last comments contradict your earlier post: when did you last check estimated bill readings against actuals, or submit readings?

x_xlexusx_x

I am obviously not explaining myself very well... I know how to provide a meter reading in all of the ways mentioned above. I just wondered why there isn't a way for the energy company to read our usage electronically without the need for a person to physically have to read it at this end. For example I don't need to tell the phone company how many calls I make each month.

My bill is still not the focus really.

Cardew

x_xlexusx_x wrote: »

I am obviously not explaining myself very well... I know how to provide a meter reading in all of the ways mentioned above. I just wondered why there isn't a way for the energy company to read our usage electronically without the need for a person to physically have to read it at this end. For example I don't need to tell the phone company how many calls I make each month.

My bill is still not the focus really.

'Smart meters' will eventually be used in UK and then the Energy companies will have remote 'instant' reading of your meter and can produce exact bills as required.


I have an 11 year old property in the USA which has exactly that system.


With some 30 million properties and 53 million gas and electricity meters in UK the cost will be huge; the estimate is £11 billion - but that will rise!


http://www.which.co.uk/energy/creating-an-energy-saving-home/guides/smart-meters-and-energy-monitors-explained/smart-meter-roll-out/


https://www.gov.uk/government/policies/helping-households-to-cut-their-energy-bills/supporting-pages/smart-meters

x_xlexusx_x

Thank you Cardew!

That is exactly what I had hoped to find and was unable to do so before posting this question. This is very helpful and informative.

Thanks again.