Energy company mistake

TheReikiman

I changed from one energy company to another because the new one could supply for £119 per month instead of £134. At a six month review they further reduced the payment to £79. However, the balance was actually -£223 and they had read it as a positive figure. Now a further six months along and I am £450 in arrears. In touch with them today and they have raised the payments to £153, taking the first one out today. They admit the mistake was theirs and I have all e mails etc to prove it was their mistake. They have offered £40 compensation and apologised, but insist on the payment. Can they do this?

ljonski

repost this on the energy board for a better responce

peter_the_piper

Did you not suspect an error at such a large reduction?

knightstyle

Surely when switching you looked at the standing charge and unit costs? Were these cheaper with the new supplier?
If so then they have saved you money as promised.
Have a look at your readings over the last year or so and see if your consumption has gone up.
The monthly payments are always an estimate and subject to change.

bod1467

TheReikiman wrote: »

They have offered £40 compensation and apologised, but insist on the payment. Can they do this?

Yes they can, and they are compensating you for their mistake.

Did YOU not see the -£223 balance and wonder why they were reducing your monthly charge? If you did, why didn't you query it?

Sooler

TheReikiman wrote: »

Can they do this?

Yes. You used it - you pay for it. :icotbaske

dodger1

TheReikiman wrote: »

I changed from one energy company to another because the new one could supply for £119 per month instead of £134. At a six month review they further reduced the payment to £79. However, the balance was actually -£223 and they had read it as a positive figure. Now a further six months along and I am £450 in arrears. In touch with them today and they have raised the payments to £153, taking the first one out today. They admit the mistake was theirs and I have all e mails etc to prove it was their mistake. They have offered £40 compensation and apologised, but insist on the payment. Can they do this?

Confused with the bolded part. Was the balance shown on the statement as -£223 or £223. If it was -£223 then you were in credit for that amount so the reduction in monthly payments would have been warranted (that's how mine works). However you say that they read it as a positive figure, but this would have meant an increase was necessary, if it had been a positive number and they had read it as a negative figure that would make more sense. Was the balance based on a physical reading or an estimate?

Either way you owe them the money.

TheReikiman

The way I understood it was that the -£223 was a debit figure. By further decreasing the payments they drove the account further into debit. I admit that I was rather naïve and assumed that because it was being decreased that the company were giving me a good deal. Big lesson learned here. Check the paperwork. Just going to pay in one go and leave this provider after reading all the reports about them on this forum. Thanks to people for your comments. We learn from our mistakes.

dodger1

TheReikiman wrote: »

The way I understood it was that the -£223 was a debit figure. By further decreasing the payments they drove the account further into debit. I admit that I was rather naïve and assumed that because it was being decreased that the company were giving me a good deal. Big lesson learned here. Check the paperwork. Just going to pay in one go and leave this provider after reading all the reports about them on this forum. Thanks to people for your comments. We learn from our mistakes.

Certainly with Scottish power and Southern Electricity a minus figure is a credit. A debit is what you owe and therefore a minus debit means they owe you that amount. It's standard to decrease payments when a minus is shown, so was the minus figure based on an actual reading or an estimate, an estimated bill appears the only logical explanation for the problem.

msallen

TheReikiman wrote: »

The way I understood it was that the -£223 was a debit figure. By further decreasing the payments they drove the account further into debit. I admit that I was rather naïve and assumed that because it was being decreased that the company were giving me a good deal. Big lesson learned here. Check the paperwork. Just going to pay in one go and leave this provider after reading all the reports about them on this forum. Thanks to people for your comments. We learn from our mistakes.

I still don't see the problem, or why you are so keen to leave them*. They basically gave you an interest free loan for a few months for the cost of the energy.

* Certainly leave them if they are no longer the cheapest supplier, but not just because of this.