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Should First Utility refund me in full?

When I moved into my new property a few months ago, I set up a duel fuel account with First Utility. British Gas had been the previous supplier for the previous tenant.

I have just found out that First Utility had not processed the switch properly (despite confirming to me that they had) and that British Gas have been supplying me all this time. I have been paying First Utility by direct debit for my gas supply and have now ended up with a bill from British Gas as well. I contacted First Utility and they are obviously happy to refund me for all the gas supply charges.

However, I also pointed out that British Gas have charged me a much higher rate - £34 per month for gas usage, whereas I would have been charged only £12 per month for actual gas usage had First Utility supplied me. I feel it would be unfair for me to pay the higher charges to British Gas which are a result of an error on their part.

They offered me £15 cashback as a 'gesture of goodwill'. I refused and now they are offering me £30. However the discrepancy is more like £70. Should I accept the £30 or ask them to pay me the difference in full?

That's my main gripe, but if you're a sucker for long rants then please do read on!

On top of it all, I noticed an additional payment going out to them for the amount of £227.46 (on top of my usual £89 per month direct debit). When I questioned this, they told me it was the debit outstanding after my final bill from my previous address. They claimed to have emailed me a final bill warning me of this, but they definitely hadn't, leaving me to face overdrawn bank charges as I was unprepared for this amount leaving my account.

I'm also surprised and a tad confused, because in all my years of switching energy suppliers (which I do every 1 -2 years) I have NEVER been in debit after my final bill, and have always looked forward to receiving my credit. :(

Comments

  • naedanger
    naedanger Posts: 3,105 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    When I moved into my new property a few months ago, I set up a duel fuel account with First Utility. British Gas had been the previous supplier for the previous tenant.

    I have just found out that First Utility had not processed the switch properly (despite confirming to me that they had) and that British Gas have been supplying me all this time. I have been paying First Utility by direct debit for my gas supply and have now ended up with a bill from British Gas as well. I contacted First Utility and they are obviously happy to refund me for all the gas supply charges.

    However, I also pointed out that British Gas have charged me a much higher rate - £34 per month for gas usage, whereas I would have been charged only £12 per month for actual gas usage had First Utility supplied me. I feel it would be unfair for me to pay the higher charges to British Gas which are a result of an error on their part.

    They (who are they? BG or First U?) offered me £15 cashback as a 'gesture of goodwill'. I refused and now they are offering me £30. However the discrepancy is more like £70. Should I accept the £30 or ask them to pay me the difference in full?

    If you lost out financially as a result of First Utility's error then FU should make good the full loss. If BG are blameless then are entitled to collect their full amounts.

    Your loss should be calculated based on actual usage not estimated usage or you actual payments (if these are based on estimates).

    If FU won't fully compensate you then ask for their complaint process and follow it. Put your complaint in writing e.g. by email.
    That's my main gripe, but if you're a sucker for long rants then please do read on!

    On top of it all, I noticed an additional payment going out to them for the amount of £227.46 (on top of my usual £89 per month direct debit). When I questioned this, they told me it was the debit outstanding after my final bill from my previous address. They claimed to have emailed me a final bill warning me of this, but they definitely hadn't, leaving me to face overdrawn bank charges as I was unprepared for this amount leaving my account.

    I'm also surprised and a tad confused, because in all my years of switching energy suppliers (which I do every 1 -2 years) I have NEVER been in debit after my final bill, and have always looked forward to receiving my credit. :(

    Tell them you never got a final bill and ask for a copy. Then check the bill. If it is wrong then again follow their complaint procedure.
  • You surely only have to pay once for your energy and if you have been paying FU since they told you that they had taken over the supply then you have indeed paid. If BG feel that it is they who should have been paid, then I would suggest to them that they ask FU to pass your money over to them. I repeat - you cannot be expected to pay for your energy more than once.

    A problem might be that the level of your monthly payments is not necessarily a good indicator of your actual energy costs over the period in question. You need to be able to calculate your precise energy costs by matching your actual tariff prices to your actual meter readings. You need to apply the same process to the final demand for £227.46
    mad mocs - the pavement worrier
  • naedanger wrote: »
    If you lost out financially as a result of First Utility's error then FU should make good the full loss. If BG are blameless then are entitled to collect their full amounts.

    Your loss should be calculated based on actual usage not estimated usage or you actual payments (if these are based on estimates).

    If FU won't fully compensate you then ask for their complaint process and follow it. Put your complaint in writing e.g. by email.



    Tell them you never got a final bill and ask for a copy. Then check the bill. If it is wrong then again follow their complaint procedure.

    Thanks, that's what I thought. BG of course should be paid in full but why should I lose out because of FU's incompetence? They are going to email me the final bill.
  • You surely only have to pay once for your energy and if you have been paying FU since they told you that they had taken over the supply then you have indeed paid. If BG feel that it is they who should have been paid, then I would suggest to them that they ask FU to pass your money over to them. I repeat - you cannot be expected to pay for your energy more than once.

    A problem might be that the level of your monthly payments is not necessarily a good indicator of your actual energy costs over the period in question. You need to be able to calculate your precise energy costs by matching your actual tariff prices to your actual meter readings. You need to apply the same process to the final demand for £227.46

    I never thought to go about it that way round. I'm pretty sure BG won't chase FU up for it though...as BG supplied the gas to me so in their eyes I am accountable. I have explained the situation to BG and I've told them I will not be able to pay them until I have settled with FU.

    I am waiting for my final bill which I guess will give me more information on what my actual usage has been.
  • Do you now have a date which FU and BG are agreed upon as the date when the supply was switched from one to the other? If not, then I suggest paying nothing more to neither until you know for certain who is supplying you with your energy, and from when. But make sure you have a history of regular meter readings and full details of previous and current tariff prices.

    In your original post you mentioned setting up a dual fuel account, but your problems seem to be limited to your gas supply only?
    mad mocs - the pavement worrier
  • Do you now have a date which FU and BG are agreed upon as the date when the supply was switched from one to the other? If not, then I suggest paying nothing more to neither until you know for certain who is supplying you with your energy, and from when. But make sure you have a history of regular meter readings and full details of previous and current tariff prices.

    In your original post you mentioned setting up a dual fuel account, but your problems seem to be limited to your gas supply only?

    I've never actively chosen BG to supply my gas, they were the suppliers for the tenants before and I owe them just for a couple of weeks until I opened my account my FU - and yes I have the exact date they were supposed to have switched me over. I have since changed supplier again, just a week ago.

    Yes, FU managed to switch over my electricity, but not my gas for some reason.
  • I've never actively chosen BG to supply my gas, they were the suppliers for the tenants before and I owe them just for a couple of weeks until I opened my account my FU - and yes I have the exact date they were supposed to have switched me over. I have since changed supplier again, just a week ago.

    Yes, FU managed to switch over my electricity, but not my gas for some reason.
    When you switched last week, your new supplier should have sent you copies of the Tariff Information Label(s) which are applicable to your new contract(s). Hopefully, you have kept a note of the date and opening meter readings of last week's switch. If you now take regular monthly meter readings and submit them to your supplier you will be able avoid 'estimated' bills and you will be able to calculate for yourself precisely how much your account is in debit or credit. Your monthly payment plan tells you little or nothing about your actual energy costs.
    mad mocs - the pavement worrier
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