What compensation should I ask for?

Jojo55

My energy company have finally billed me after 13 months of having no gas account set up. After admitting their faults with this complaint they have applied the back billing policy but have also admitted that they shouldn't have advised me NOT to make payments as they have been the whole way through and are asking me what compensation I would like to ask for - i have no idea what a realistic amount to ask for is? We have been setting aside what we thought was a reasonable amount for gas each month but their prices have obviously shot up and we are quite a way short and will still need to set up a payment plan.
The balance is £1600, they have discounted £80 for back billing and offered a further £150. I said i wasn't happy with that and they've asked me to give an amount i have in mind. What do you think? Any advise appreciated, they are calling me back later this afternoon.

Andy_WSM

Jojo55 wrote: »

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The balance is £1600, they have discounted £80 for back billing and offered a further £150. I said i wasn't happy with that and they've asked me to give an amount i have in mind. What do you think? Any advise appreciated, they are calling me back later this afternoon.

If you made a complaint and it went to the ombudsman they you probably wouldn't get offered that much!

I think you've had a very good offer already - and also the benefit of an interest free loan!

Bluebirdman_of_Alcathays

As above. You've had the money earning interest in your bank, instead of paying for the energy you've used. You've only been billed for 12 rather than 13 months as per back billing. The further £150 is more compensation than I've ever known the ombudsman offer.

Jojo55

We haven't been earning interest on what we've been saving, please don't make the mistake of thinking we are financially better off for this situation. I don't have any debt apart from this so I'm rather upset about it, I've never owed so much in my life its quite worrying that we're going to be paying this off for quite a while to come.

Would it do any harm to ask for more, in the hope that the worst they can say is no? Or would you advise to just take the offer?

Cardew

Jojo55 wrote: »

We haven't been earning interest on what we've been saving, please don't make the mistake of thinking we are financially better off for this situation. I don't have any debt apart from this so I'm rather upset about it, I've never owed so much in my life its quite worrying that we're going to be paying this off for quite a while to come.

You have used the gas and with their offer you are £230 better off.


IMO it is quite a generous offer and you haven't been really inconvenienced - just got a late bill.


However as it would appear they are willing to negotiate - ask for another £50.

Bluebirdman_of_Alcathays

Jojo55 wrote: »

We haven't been earning interest on what we've been saving, please don't make the mistake of thinking we are financially better off for this situation. I don't have any debt apart from this so I'm rather upset about it, I've never owed so much in my life its quite worrying that we're going to be paying this off for quite a while to come.

Would it do any harm to ask for more, in the hope that the worst they can say is no? Or would you advise to just take the offer?

Of course you are - you've received a £230 reduction in your bill. You've also benefited in interest - the money that should be with the energy co has been sat with you.

If you don't have any debt you're clearly financially competent, I'm surprised you haven't been setting some aside each month in expectation of this bill.

If they've said outright they're willing to offer more - then of course, ask for more. Be aware if they think you're starting to take the michael they'll just tell you to go to the ombudsman, who will almost certainly put you in a worse position than you currently stand.

Jojo55

Bluebirdman_of_Alcathays wrote: »

Of course you are - you've received a £230 reduction in your bill. You've also benefited in interest - the money that should be with the energy co has been sat with you.

If you don't have any debt you're clearly financially competent, I'm surprised you haven't been setting some aside each month in expectation of this bill.

If they've said outright they're willing to offer more - then of course, ask for more. Be aware if they think you're starting to take the michael they'll just tell you to go to the ombudsman, who will almost certainly put you in a worse position than you currently stand.

I have been setting a sum aside - i did state this in my op. Thanks.

Bigphil1474

To be fair, the total bill of £1600 is what you owe, so saving £230 is fair exchange for the hassle - 14% saving. You could round it up to a 20% off level - which would be £320 minus the £80 they already gave you, which is then £240, but I agree with Bluebirdman, don't over do it or they may withdraw the offer and its more hassle to you. If you got another £50 or so and got them to agree to phased repayment, you'd be laughing.

dogshome

So with a deduction of £80 for one month, the £1,600 bill covers the last 12 months

You don't give any details of your house or family size, but allowing for VAT and the Daily Service charge, the bill is for useing appx 28,500 Kwh in one year, which is a lot - Are you happy with the Start and End Readings on this bill?

imho

I have filled in the form for the Ombudsman to look at my long complaint and i dont care if i get compensation or not So if they are offering you cash i would just take it.
I just want to pay the cash i owe and get out of the fixed contract and go with anyone else as long i am not stuck with SP

Jojo55

The readings are correct as I've given them to avoid estimated bills.

Firstly they have called back to admit that £1600 is actually an incorrect figure and the sum is actually approx £1100.

Secondly I've asked for their original offer of £150 to be increased to £400 on the basis that:
-I've willingly offered to make payments over the last 13 months and have been refused so
-I've wrongly received debt collection letters throughout despite being told the account was not with their collections team
-The time and money spent on the phone constantly trying to resolve the matter.

They have accepted my request and applied the discount, and also set up a payment plan to suit our budget.

I've read in the media today that Ofgem have given them two months to finalise all their complaints or they will ban them from any telesales activity - no wonder she was so quick so close my case. After 13 months!