Switching Fixed Tariffs in Winter - Caveat Emptor

Legacy_user

After 4 1/2 months, The Energy Ombudsman has determined finally that it is reasonable for an energy company to ignore a customer's annual energy projections and the property EAC and AQ data when re-assessing annual energy consumption.

Quote When XXX reassessed your direct debit, it only had 3 months of actual usage to go on, I do consider it appropriate that it took this as an indication of a year's usage, and then divided this by 12 monthly payments. XXX is obligated by its license conditions to ensure that it does not take action that would leave its customers in debt. While I accept that the EAC and AQ ratings show lower usage, this does not mean that this will be your usage in the property. Unquote

So XXX was right to propose a 25% increase after 3 months (I am not sure where the EO's 12 months came from as the calculation is 'revised annual consumption less payments made divided by the 9 remaining months of the fixed term' ) Looking back 12 months, my actual usage was on par with the EAC and AQ and LESS than the annual projections given on switch. It follows that I was paying too much, and assessing annual usage based on 3 months of Winter usage was a distorting factor in the supplier's favour.

As things turned out, XXX didn't get a chance to impose the higher DD, and my present supplier seems happy with the amount that I am paying.

Out-of interest, XXX assessed my annual electricity usage to be 3565.34kWhs for the previous year: my new supplier believes that this was 2541kWhs and the EAC is 2598kWhs.
We have lived in the property for 15 years.

In sum, beware of switching suppliers during the colder months.

flanneur

npower show 2 sets of estimated 12 month usage figures on their latest statement/bill. then they use the highest to work out direct debit payments. even their lowest was 50% more on gas than last 12 months actual use. the figure they used was 80% more!! (the electricity figures were wrong too, but not as bad, only 10%) they had just refunded £90 as we were paying too much, then increased the already too high dd by 33.86%. all these companies try to make sure the account is constantly in credit by far too much. how many millions does this equate to nationwide? also, the figures used were further skewed in their favour by applying 4 months at full whack after the current fix ends on 30/06/16. on another bill, when i asked a customer services advisor why another account showed a 25% difference in 2 estimated electricity figures she said "it is because they are estimates!!!" & later what 12 x 7 was she advised me that she was "not stupid" & when asked again, "i can find out"!!
scottish power appear to be as bad & are also refusing to refund any of the £140 warm home discount, allowed to my elderly mother, or even use any of it towards any bills, until march 2016. so that is 6 months of that account being in credit by more than £140!!